No. F.14 (32)/LA-2003 – The following Act of the Legislative Assembly of
the National Capital Territory of Delhi received the assent of the President
of India on the 3rd March, 2004 and is hereby published for general
information: -

“THE
DELHI
CO-OPERATIVE SOCIETIES ACT, 2003”(
DELHI
ACT 3 OF 2004)

(As passed by the
Legislative Assembly of the National Capital Territory of Delhi on
the 29th July, 2003
)

[
3rd March, 2003
]

As
Act to consolidate and amend the laws relating to co-operative societies, to
facilitate the voluntary formation and democratic functioning of
co-operatives as people’s institutions based on self help and mutual aid
to enable them to promote their economic and social betterment and to
provide for regulation, management, functional autonomy of such societies
and for matters connected therewith or incidental thereto in the National
Capital Territory of Delhi.

Be it enacted by the Legislative Assembly of the National Capital Territory
of Delhi in the Fifty fourth Year of Republic of India as follows: -

(l)
"Divisional Commissioner" means an officer appointed by the
Government as such possessing the powers of the Collector and the District
Magistrate under the relevant laws for the time being in force.

(m)
"federal co-operative society" means a co-operative society whose
membership is available only to co-operative societies and in the case of a
federal co- operative society formed with the main objective to propagate
and promote activities in the field of art, culture, education, information
technology, training, industry, etc., shall also include experts in the
respective fields in individual capacity not exceeding one-fifths of the
total strength of such society or twenty, whichever is less;

(n)
"financing bank" means a co-operative bank the objects of which
include the creation of funds to be lent to other co-operative societies;

(o)
"general body" in relation to a primary co-operative society means
all the members of that co-operative society and in relation to a federal
co-operative society, means all the delegates of the member co-operative
societies and the individual members as per clause (m);

(p)
"Government" means the Lieutenant Governor of the National Capital
Territory of Delhi appointed by the President under article 239 and
designated by such under article 239 AA of the Constitution;

(q)
"Lieutenant-Governor" means the Administrator of National Capital
Territory of Delhi appointed by the President under article 239 of the
Constitution;

(r)
"member" means a person joining in the application for the
registration of a co-operative society and a person admitted to membership
after such registration in accordance with this Act, the rules and the
bye-laws, and includes a nominal or associate or joint member and the
Government when it subscribes to the share capital of a co-operative
society;

(s)
"NABARD" means the National Bank of Agriculture and Rural
Development constituted under the National Bank for Agriculture and Rural
Development Act, 1981 (61 of 1981);

(t)
``officer'' means the president, vice-president, chairman, vice-chairman,
managing director, secretary, manager, member of committee, treasurer,
liquidator, administrator and includes any other person empowered under this
Act, the rules or the bye-laws, to give directions in regard to the business
of a co-operative society;

(u)
"prescribed'' means prescribed by rules made under this Act;

(v)
"primary co-operative society" means a co-operative society in
which individuals are members;

(w)
"Registrar" means a person appointed to perform the functions of
the Registrar of co-operative societies under this Act and includes any
person appointed to assist the Registrar when exercising all or any of the
powers of the Registrar;

3.
(1) The Government may, by notification in the Official Gazette, appoint a
person to be the Registrar of co-operative societies for
Delhi
and may appoint other persons to assist him.

(2)
The Government may, by general or special order, confer on any person
appointed to assist the Registrar all or any of the powers of Registrar
under this Act.

(3)
Every person appointed to assist the Registrar shall exercise the powers
conferred on him under sub-section(2) subject to the general guidance,
superintendence and control of the Registrar.

(4)
The Government may, by notification in the Official Gazette and subject to
such conditions as it may think fit to impose, confer all or any of the
powers of the Registrar under this Act on any federal co-operative society,
or an officer of such federal co-operative society, and every such federal
co-operative society or officer on whom the powers of the Registrar are so
conferred shall exercise such powers under the general guidance,
superintendence and control of the Registrar.

4.
(1) Subject to the provisions
hereinafter contained, a co-operative society which has its object the
promotion of economic, social and cultural interests of its members, in
accordance with co-operative principles, or a co-operative society
established with the object of facilitating the operations of such a
co-operative society, may be registered under this Act with limited
liability:

Provided
that a co-operative society shall be registered only if it fulfils the
viability norms with limited liability as prescribed for a co-operative
society or class of co-operative societies to ensure that it is economically
sound and its registration may not adversely affect the development of
co-operative movement.

(2)
The word "limited" or its equivalent in any Indian language shall
be the last word in the name of every co-operative society registered under
this Act with limited liability.

5.
No co-operative society shall be
registered under this Act unless it consists of at least fifteen members who
are qualified to be members under this Act and who reside in the area of
operation of the co-operative society :

Provided
that in the case of a primary co-operative society each of such members
shall be a member of different family.

Explanation
.- For the purpose of this section the expression, "member of a
family" means father, mother, wife, husband and dependent children.

6.
No member other than the Government or
a co-operative society shall hold more than such portion of the share
capital of a co-operative society subject to a maximum of one-tenths, as may
be prescribed.

7.(1)For the purposes of registration, an application shall be made to the
Registrar.

(2)
The application shall be signed -

(a)
in case of a co-operative society of which no member is a co-operative
society, by at least fifteen persons qualified in accordance with the
requirements of section 4; and

(b)
in case of a federal co-operative society of which a member is a
co-operative society, by a duly authorised person on behalf of such
co-operative society and where all the members of the federal co-operative
society are not co-operative societies, upto one-fifths of total strength or
twenty, whichever is less, of other members, by the minimum number of
fifteen and where all members are co-operative societies by duly authorised
persons on behalf of fifteen different co-operative societies.

8.
Where any question arises at the stage
of registration whether for the purpose of this Act a person resides in the
area of operation of a co-operative society or not, or whether a
co-operative society is of same type as another co-operative society or of
different type, the question shall be decided by the Registrar whose
decision shall be final.

(a)
that the application complies with the provisions of this Act and the rules;

(b)
that the objects of the proposed co-operative society are in accordance with
section 4;

(c)
that the proposed bye-laws are not contrary to the provisions of this Act
and the rules;

(d)
that in case of co-operative bank prior written permission of the Reserve
Bank for registration has been received by the Registrar; and

(e)
that the proposed co-operative society has reasonable chances of success;
the Registrar may register the co-operative society and its bye-laws.

(2)
When the Registrar refuses to register a co-operative society, he shall
communicate the order of refusal together with the reasons, therefor, to the
applicant.

(3)
The application for registration shall be disposed of by the Registrar
within a period of ninety days from the date of receipt thereof by him

Provided
that if the Registrar is unable to dispose of the application within the
aforesaid period, he shall make a report to the Government stating therein
the reasons for his inability to do so, and the Government may allow him
further time not exceeding ninety days to dispose of such application :

Provided
further that if the application for registration is not disposed of within
the aforesaid period of ninety days and the Registrar fails to communicate
the order of refusal within that period, the application shall be deemed to
have been accepted for registration and the Registrar shall issue the
registration certificate in accordance with the provisions of this Act and
the rules made thereunder.

10.
Where a co-operative society is
registered or deemed to be registered under this Act, the Registrar shall
issue a certificate of registration signed by him, which shall be conclusive
evidence that the co-operative society therein mentioned is duly registered
under this Act.

12.
(1) No amendment of any bye-laws of a co-operative society shall be valid
unless such amendment has been registered or deemed to have been registered
under this Act.

(2)
Every proposal for such amendment approved by the general body and complete
in all respect as prescribed shall be forwarded to the Registrar within
thirty days of approval of the general body and if the Registrar is
satisfied that the proposed amendment -

(a)
is not contrary to the provisions of this Act and the rules;

(b)
does not conflict with the co-operative principles; and

(c)
will promote the economic, social and cultural interests of the members of
the co-operative society; he may register the amendment :

Provided
that in case of amendment of bye-laws
of a co-operative bank, prior approval in writing of the Reserve Bank shall
be necessary.

(3)
The Registrar shall forward to the co-operative society a copy of the
registered amendment together with a certificate signed by him and such
certificate shall be conclusive evidence that the amendment has been duly
registered.

(4)
Where the Registrar refuses to register an amendment of bye-laws of a
co-operative society, he shall communicate the order of refusal together
with the reasons therefor, to the co-operative society in the prescribed
manner.

(5)
In case the Registrar does not communicate any decision under sub-section
(2) or sub-section (4) as above within the period of ninety days, the
amended bye-laws shall be deemed to have been registered.

(6)
Where it appears to the Registrar that amendment in the bye-laws of a
co-operative society is necessary and desirable in the interest of the
co-operative society or class of co-operative societies, the Registrar shall
direct the co-operative society or the class of co-operative societies, as
the case may be, to make amendment in the bye-laws within a period of sixty
days, by convening a general body meeting of the co-operative society.

(7)
After the expiry of the period specified in sub- section (6) and if the
co-operative society fails to make the amendment, the Registrar after giving
the co-operative society an opportunity of being heard, may register the
amendment and issue to the co-operative society, a copy of such amendment
certified by him with a certificate signed by him, with effect from the date
of registration the amendment shall be binding on the co-operative society
and its members, subject to appeal, if any.

13.
An amendment of the bye-laws of a
co-operative society shall, unless it is expressed to come into operation on
a particular day, come into force on the day on which it is registered or
deemed to be registered.

14.(1)
A co-operative society may by an amendment of its bye-laws, change its name
but such change shall not affect any right or obligation of the co-operative
society or of any of its members or past members and any legal proceedings
pending may be continued by or against the co-operative society under its
new name :

Provided
that prior approval in writing of the Reserve Bank shall be necessary for
change of the name of a co-operative bank.

(2)
Where a co-operative society changes its name, the Registrar shall enter the
new name on the register of co-operative societies in place of the former
name and shall amend the certificate of registration accordingly.

15.(1)
Subject to the provisions of this Act and the rules, a co-operative society
may, by an amendment of its bye-laws change the form or extent of its
liability.

(2)
When a co-operative society has passed a resolution to change the form or
extent of its liability, it shall give notice thereof in writing to all its
members and creditors and, notwithstanding any bye-laws or contract to the
contrary, any member or creditor shall, during a period of thirty days from
the date of service of the notice upon him, have the option of withdrawing
his shares, deposits or loans, as the case may be.

(3)
Any member or creditor who does not exercise his option within the period
specified in sub-section (2) shall be deemed to have assented to the change.

(4)
An amendment of a bye-laws of a co-operative society changing the form or
extent of its liability shall not be registered or take effect until either
-

(a)
the assent thereto of all members and creditors has been obtained; or

(b)
all claims of members and creditors who exercise the option referred to in
sub-section (2) within the period specified therein have been met in full.

16.(1)
A co-operative society may, by a resolution passed by a two-thirds majority
of the members present and voting at a general body meeting of the
co-operative society -

(a)
transfer its assets and liabilities in whole or in part to any other
co-operative society;

(b)
divide itself into two or more co-operative societies.

(2)
Any two or more co-operative societies may, by a resolution passed by a
two-thirds majority of the members present and voting at a general body
meeting of each such co-operative society, amalgamate themselves and form a
new co-operative society.

(3)
The resolution of a co-operative society under sub-section (1) or
sub-section (2) shall contain all particulars of the transfer, division or
amalgamation, as the case may be :

Provided
that in the case of a co-operative bank, the Registrar shall not accord
approval to any such resolution without the previous sanction in writing of
the Reserve Bank.

(4)
When a co-operative society has passed any such resolution, it shall give
notice thereof in writing to all its members and creditors and,
notwithstanding any bye-laws or contract to the contrary, any member or
creditor shall, during the period of thirty days of the date of service of
the notice upon him, have the option of withdrawing his shares, deposits or
loans, as the case may be.

(5)
Any member or creditor who does not exercise his option within the period
specified in sub-section (4) shall be deemed to have assented to the
proposals contained in the resolution.

(6)
A resolution passed by a co-operative society under this section shall not
take effect until, either -

(a)
the assent thereto of all the members and creditors has been obtained;

(b)
all claims of members and creditors who exercise the option referred to in
sub-section (4) within the period specified therein have been met in full.

(7)
Where a resolution passed by a co-operative society under this section
involves the transfer of any assets and liabilities, the resolution shall,
notwithstanding anything contained in any law for the time being in force,
be a sufficient conveyance to vest the assets and liabilities in the
transferee without any further assurance.

17.
(1) Where the Registrar is satisfied
that it is essential in the public interest, or in the interest of the
co-operative movement, or for the purpose of securing the proper management
of any co-operative society that two or more co-operative societies should
be amalgamated or any co-operative society should be divided to form two or
more co-operative societies or should be reorganised, then notwithstanding
anything contained in section 16, but subject to the provisions of this
section, the Registrar may, by order, provide for the amalgamation, division
or reorganisation of these co-operative societies into a single co-operative
society or into co-operative societies with such constitution, property,
rights, interest and authorities and such liabilities, duties and
obligations as may be specified in the order:

Provided
that no such order of amalgamation, division or reorganisation in respect of
a co-operative bank shall be made without the previous sanction in writing
of the Reserve Bank.

(2)
No order shall be made under this section unless -

(a)
a copy of the proposed order has been sent in draft to the co-operative
society or each of the co-operative societies concerned; and

(b)
the Registrar has considered and made such modifications in the draft order
as may seem to him desirable in the light of any suggestions and objections
which may be received by him within such period (not being less than sixty
days from the date on which a copy of the order aforesaid is received by the
co-operative society or co-operative societies, as the case may be), as the
Registrar may fix in that behalf, either from the co-operative society or
from any of the co-operative societies concerned or from any member or class
of members thereof or from any creditor or class of creditors thereof.

(3)
The order referred to in sub-section (1) may contain such incidental,
consequential and supplemental provisions as may, in the opinion of the
Registrar, be necessary to give effect to the amalgamation, division or
reorganisation, as the case may be.

(4)
Every member or creditor of each of the co-operative society to be
amalgamated, divided or reorganised, who has objected to the scheme of
amalgamation, division, or reorganisation, within the period specified,
shall be entitled to receive, on the issue of the order of amalgamation,
division or reorganisation, his share or interest, if he be a member and the
amount in satisfaction of his dues, if he be a creditor.

(5)
On the issue of an order under sub-section (1), the provisions of
sub-sections (2), (3) and (4) of section 20 shall apply to the co-operative
societies so amalgamated, divided or reorganised as if the amalgamation,
division or reorganisation had been made under section 16.

18.
(1) When an order of moratorium has been made by the Central Government
under sub-section (2) of section 45 of the Banking Regulations Act, 1949 (10
of 1949) in respect of a co-operative bank, the Registrar, with the previous
approval of the Reserve Bank in writing, may, during the period of
moratorium, prepare a scheme -

(a)
for the reorganisation of the co-operative bank; or

(b)
for the amalgamation of the co-operative bank with any other co-operative
bank.

19.
Notwithstanding anything contained in
sections 16 and 17 or any other provision of this Act, where a co-operative
bank, being an insured bank within the meaning of the Deposit Insurance and
Credit Guarantee Corporation Act, 1961 (47 of 1961), is amalgamated or
reorganised and the Deposit Insurance Corporation has become liable to pay
to the depositors of the insured bank under sub-section (2) of section 16 of
that Act, the bank with which insured bank is amalgamated or the new
co-operative bank formed after such amalgamation, as the case may be, the
insured bank or transferee bank shall be under an obligation, to repay the
Deposit Insurance Corporation in the circumstances, to the extent of and in
the manner referred to in section 21 of the Deposit Insurance and Credit
Guarantee Corporation Act,1961 (47 of 1961).

20.(1)Where the whole of the assets and liabilities of a co-operative society
are transferred to another co-operative society in accordance with the
provisions of section 16 or section 17, the registration of the first
mentioned co-operative society shall stand cancelled and the co-operative
society shall be deemed to have been dissolved and shall cease to exist as
corporate body.

(2)
Where two or more co-operative societies are amalgamated into a new
co-operative society in accordance with the provisions of section 16 or
section 17, the registration of each of the amalgamating co-operative
society shall stand cancelled on the registration of the new co-operative
society, and each co-operative society shall be deemed to have been
dissolved and shall cease to exist as a corporate body.

(3)
Where a co-operative society divides itself into two or more co-operative
societies in accordance with the provisions of section 16 or is divided by
the Registrar in accordance with the provisions of section 17, the
registration of that co-operative society shall stand cancelled on the
registration of the new co-operative society and that co-operative society
shall be deemed to have been dissolved and shall cease to exist as a
corporate body.

(4)
The amalgamation and splitting of co-operative society or co-operative
societies shall not in any manner whatsoever affect any right or obligation
of resulting co-operative society or co-operative societies or render
defective any legal proceedings by or against the co-operative society or
co-operative societies or any legal proceedings that might have been
continued or commenced by or against the co-operative society or
co-operative societies, as the case may be, before the amalgamation or
splitting may be continued or commenced by or against the resulting
co-operative society or co-operative societies.

(5)
Where a co-operative society has not commenced business within one hundred
and eighty days of its registration or has ceased to function or if the
Registrar is satisfied on the basis of inspection, inquiry or audit that the
co-operative society no longer has genuinely as its object one or more of
the objects specified in section 4 and that its registration ought, in the
interest of general public, be cancelled, he shall give an opportunity to
the co-operative society to represent its case and if not satisfied he shall
make an order cancelling the registration of the co-operative society, the
co-operative society shall, from the date of such order of cancellation be
deemed to be dissolved and shall cease to exist as a corporate body.

22.(1)
No person shall be admitted as member of a co-operative society except the
following, namely -

(a)
an individual competent to contract under section 11 of the Indian Contract
Act, 1872 (9 of 1872);

(b)
any other co-operative society;

(c)
the Government;

(d)
a firm, a joint stock company, or any other body corporate constituted under
any law; and

(e)
such class or classes of persons or association of persons as may be
notified by the Government in this behalf :

Provided
that the provisions of clause (a) shall not apply to an individual seeking
admission to a co-operative society exclusively formed for the benefit of
students of a school or college :

Provided
further that no individual shall be eligible for admission as a member of
any financing bank or federal co-operative society except as provided in
clause (m) of section 2.

(2)
Notwithstanding anything contained in sub-section (1), the Government may,
having regard to the fact that the interest of any person or class of
persons conflicts or is likely to conflict with the objects of any
co-operative society or class of co-operative societies by general or
special order, published in the official Gazette, declare that any person or
class of persons engaged in or carrying on any profession, business or
employment shall be disqualified from being admitted, or for continuing as
member or shall be eligible for membership only to a limited extent of any
specified co-operative society or class of co-operative societies, so long
as such person is or such persons are engaged in or carrying on that
profession, business or employment, as the case may be.

23.
(1) Notwithstanding anything contained
in section 22, a co-operative society may admit any person as a nominal or
associate or joint member in accordance with its bye-laws and subject to the
rules.

(2)
A nominal or associate member shall not be entitled to any share in any form
whatsoever, in the assets or profits of the co-operative society.

(3)
Save as provided in this section, a nominal or associate or joint member
shall have such privileges and rights of a member and be subject to such
liabilities of a member as may be prescribed in rules and specified in the
bye-laws of the co-operative society.

24.
No member of a co-operative society
shall exercise the right of a member unless he has made such payment to the
co-operative society in respect of membership and share or has acquired such
interest in the co-operative society as may be specified in the bye-laws.

25.
Every member of a co-operative society
shall have one vote in the affairs of the co-operative society :

Provided
that -

(a)
in the case of an equality of votes, the Chairman shall have a second or
casting vote;

(b)
a nominal or associate or joint member shall not have the right of vote;

(c)
where the Government is a member of the co-operative society, each person
nominated by the Government on the committee shall have one vote; and

(d)
if a member is in default in payment of the sum demanded by the co-operative
society or has transferred his interest in a co-operative society to any
other member or to any other person without the approval of the competent
authority, he shall have no voting right in the general body meeting of the
co-operative society.

Explanation.
- Default means any default in payment of loan installment, land money,
construction money and annual subscription payable as provided in the
bye-laws of a co-operative society for which due notice for payment has been
served on the member or an award has been passed for recovery of such sum.

26.(1)Every member of a co-operative society shall exercise his vote in person
and no member shall be permitted to vote by proxy.

(2)
Notwithstanding anything contained in sub-section (1), a co-operative
society which is a member of another co-operative society, may appoint one
of its member to vote on its behalf in the affairs of that other
co-operative society.

28.(1)
On the death of a member, a co-operative society shall transfer the share or
interest of the deceased member to the person nominated in accordance with
the rules made in this behalf, or, if there is no person so nominated, to
such person as may appear to the committee to be the heir or legal
representative of the deceased member or pay to such nominee, heir or legal
representative, as the case may be, a sum representing the value of such
member's share or interest as ascertained in accordance with the rules or
the bye-laws:

Providedthat -

(i)
such nominee, heir or legal representative, as the case may be, may require
payment by the co-operative society of the value of the share or interest of
the deceased member ascertained as aforesaid; or

(ii)
the co-operative society shall transfer the share or interest of the
deceased member to such nominee, heir or legal representative, as the case
may be, being qualified in accordance with the rules and bye-laws for
membership of the co-operative society, or on his application within one
hundred and eighty days of the death of the deceased member to any person
specified in the application who is so qualified; and

(iii)
no such transfer or payment shall be made except with the consent of the
nominee, heir or legal representative, as the case may be.

(2)
A co-operative society shall, subject to the provisions of section 45 and
unless within three hundred and sixty five days of the death of member
prevented by an order of a competent court, pay to such nominee, heir or
legal representative, as the case may be, all other moneys due to the
deceased member from the co-operative society.

(3)
All transfers and payments made by a co-operative society in accordance with
the provisions of this section shall be valid and effectual against any
demand made upon the co-operative society by any other person.

29.
(1) Subject to the provisions of
sub-section (2), the liability of a past member or of the estate of a
deceased member of a co-operative society for the debts of the co-operative
society as they existed -

(a)
in case of a past member, on the date on which he ceased to be a member; and

(b)
in the case of a deceased member, on the date of his death; shall continue
for a period of seven hundred and thirty days from such date.

(2)
Where a co-operative society is ordered to be wound up under section 95,
section 96 or section 97, the liability of a past member or of the estate of
a deceased member who ceased to be a member or died within seven hundred and
thirty days immediately preceding the date of the order of winding up shall
continue until the entire liquidation proceedings are completed but such
liability shall extend only to the debts of the co-operative society as they
existed on the date of his ceasing to be a member or death, as the case may
be.

30.
(1) The final authority in a co-operative society shall vest in the general
body of members :

Provided
that where the bye-laws of a co-operative society provide for the
constitution of a smaller body consisting of delegates of members of the
co-operative society elected or selected in accordance with such bye-laws,
the smaller body shall exercise such powers of the general body as may be
prescribed or as may be specified in the bye-laws of the co-operative
society.

(2)
Notwithstanding anything contained in sub-section (2) of section 26 each
delegate shall have one vote in the affairs of the federal co-operative
society.

31.(1)
Every co-operative society shall within a period of ninety days next after
the date fixed for making-up its accounts for the year under the rules for
the time being in force, call a general body meeting of its members for the
purpose of _

(a)
approval of the programme of the activities of the co-operative society
prepared by the committee for the ensuing year;

(b)
election, if any, of the members of the committee other than the nominated
members subject to the provisions of section 35;

(c)
consideration of the audit report along with audited accounts and the annual
report;

(d)
disposal of the net profits; and

(e)
consideration of any other matter which may be brought forward in accordance
with the bye-laws.

(2)
If a co-operative society fails to hold the annual general body meeting
within the aforesaid period of ninety days, the Registrar or any person
authorised by him may call such meeting in the manner prescribed and that
meeting shall be deemed to be a general body meeting duly called by the
co-operative society and the Registrar may order that the expenditure
incurred in calling such a meeting shall be a charge on the delinquent
members of the committee of the co-operative society who have failed to
conduct the general body meeting within the prescribed time limit and the
said amount shall be recoverable as arrears of land revenue from such
delinquent members of the co-operative society in the same manner as
provided in section 111.

(3)
At every annual general body meeting of the co-operative society, the
committee shall lay before the general body a statement showing the details
of the loans, if any, given to any of the members of the committee during
the preceding year.

32.
Every year within thirty days of holding of annual general body meeting, the
committee shall file returns relating to its constitution, business and
allied matters to the Registrar as prescribed and if the returns are not
filed, it shall be an offence under this Act and the persons responsible
shall be penalised in accordance with the provisions of this Act.

33.
(1) The committee of a co-operative
society may, at any time, call a special general body meeting of the
co-operative society and shall call such meeting within thirty days after
the receipt of a requisition in writing from the Registrar or on a request
to the Registrar by the institution to which co-operative society is
indebted, if the number of defaulter members of such co-operative society is
one-fifths or more among the loanee members or on a requisition from
one-fifths members out of total membership of a co-operative society.

(2)
If a special general body meeting of a co-operative society is not called in
accordance with the requisition referred to in sub-section (1), the
Registrar or any person authorised by him in this behalf shall have the
power to call such meeting and that meeting shall be deemed to be a meeting
called by the committee and the Registrar may order that the expenditure
incurred in calling such a meeting shall be paid out of the funds of the
co-operative society or by such person or persons who, in the opinion of the
Registrar, were responsible for the refusal or failure to convene the
special general body meeting and shall be recovered as arrears of land
revenue in the same manner as provided in section 111.

34.
The general body meeting of a
co-operative society shall constitute a committee as prescribed and in
accordance with the bye-laws and entrust the management of affairs of the
co-operative society to such committee.

35.(1)
The superintendence, direction and control of the preparation of the
electoral rolls for, and the conduct of elections of the members of the
committee of, a co-operative society shall be vested in the committee.

(2)
The vote at such election shall be by secret ballot.

(3)
The term of office of the elected members of the committee shall be three
years.

(4)
All co-operative societies shall hold election at the commencement of this
Act on the date fixed for holding annual general body meeting as provided in
section 31 and on failure to conduct election as aforesaid, the committee
shall cease to hold office and its affairs shall be managed by a person
(hereinafter referred to as "administrator") appointed by the
Registrar who shall also hold election within ninety days of his
appointment.

(5)
Thereafter the committee shall arrange election of the new committee before
the expiry of its term and in case the committee fails to do so, the
committee shall cease to hold office on the expiry of its term and the
affairs of the co-operative society shall be managed by an administrator
appointed by the Registrar who shall also hold election within ninety days
from the date of his appointment.

(6)
No person shall be eligible to be elected as a member of the committee of a
co-operative society unless he is a shareholder of that co-operative
society.

(7)
Notwithstanding any thing contained in this Act, a person shall be
disqualified for election of office in a committee -

(a)
if he holds any such office on a committee of another co-operative society
of the same type;

(b)
if he holds any such office on the committees of three or more co-operative
societies of a different type or types;

(c)
if he has been held guilty of any of the offences as enumerated in section
118;

(d)
if he is an officer of a co-operative society which has not got its
statutory audit completed within the statutory period prescribed in this
Act; or

(e)
if he fails to give a declaration on oath about his eligibility for
contesting election as prescribed.

(8)
On the committee of a co-operative society or class of co-operative
societies where the Government has subscribed to the share capital seats
shall be reserved for scheduled castes, other backward classes and women as
may be prescribed and two seats for women in all types of co-operative
societies.

(9)
The Government may make rules generally to provide for or to regulate
matters in respect of elections of members of the committees.

(10)
Notwithstanding anything contained in sub-section (1) to sub-section (9),
where the Government has subscribed to the share capital of a co-operative
society, the Government shall have right to nominate on the committee such
number of persons as its members on the following basis, namely -

(a)
where the total amount of issued equity share capital held by the Government
is less than twenty six per cent of the total issued equity share capital,
one member on the committee;

(b)
where total amount of issued share capital held by the Government is twenty
six per cent or more, but less than fifty one per cent of the total equity
share capital, two members on the committee;

(c)
where the total amount of issued equity share capital held by the Government
is fifty one per cent or more of the total issued share capital, three
members of the committee:

Provided
that the number of such nominated persons shall not exceed one-thirds of the
total number of members of the committee or three, whichever is less :

Provided
further that where the Government has guaranteed repayment of principal and
payment of interest on debenture issued by the co-operative society or
guaranteed repayment of principal and payment of interest on loans and
advances to a co-operative society, the Government shall have the right to
nominate a person on the committee of such a co-operative society as may be
prescribed :

Provided
also that in case of a financing bank, there shall be a Director on the
Board from NABARD with or without any share holding with the right of vote
in the affairs thereof;

(d)
where the Industrial Finance Corporation of India or a federal co-operative
society or a financing bank or the Delhi Financial Corporation Ltd. or any
other financing institution notified in this behalf by the Government has
provided finance to a co-operative society, the Industrial Finance
Corporation of India or such federal co-operative society or financing bank
or the Delhi Financial Corporation Ltd., or such other financing
institution, as the case may be, shall have the right to nominate one person
on the committee.

(11)
A person nominated under sub-section (10) shall hold office during the
pleasure of the Government or the concerned Corporation or federal
co-operative society, or financing bank or other financing institution, as
the case may be.

36.(1)
A motion for expressing lack of confidence in the committee or any of its
officer may be made in a special general body meeting convened for the
purpose.

(2)
The requisition for convening the special general body meeting as above
shall not be admissible unless moved in writing by not less than one-fifths
of the total members of a co-operative society, if the motion of no
confidence is carried by a simple majority of the members present and
voting, the committee shall be removed and special general body meeting
shall also elect an ad-hoc committee to take care of the affairs of the
co-operative society which shall also hold elections to the committee within
ninety days of the date of the appointment of ad-hoc committee.

37.(1)
If, in the opinion of the Registrar, the committee of any co-operative
society persistently makes default or is negligent in the performance of the
duties imposed on it by or under this Act or the rules framed thereunder,
the bye-laws or commits any act which is prejudicial to the interest of the
co-operative society or its members or defies the directions issued by the
Registrar under section 42 of this Act or fails to initiate action for
recovery or fails to recover any dues of a federal co-operative society or
any financial institution after the finality of award and issue of recovery
certificate or after such recovery fails to pay the recovery amount to the
federal co-operative society or the financial institution, the Registrar may
after giving the committee an opportunity to state its objections, if any,
by order in writing direct -

(a)
to hold election of the committee within a period of thirty days by calling
a special general body meeting; and

(b)
if in the opinion of the Registrar, the election of committee is not
feasible under the prevailing circumstances, the Registrar shall pass an
order in writing to remove the committee and appoint one or more
administrators to manage the affairs of the co-operative society for a
period not exceeding one hundred and eighty daysto be specified in
the order, which period may, at the discretion of the Registrar be extended
from time to time, however, that the aggregate period does not exceed five
hundred and fifty days :

Provided
that where the co-operative society is a co-operative bank, before issuing
of a show-cause notice under sub-section (1), the prior consultation with
the Reserve Bank and NABARD shall be necessary;

Provided
further that the supersession of the committee of a co-operative society
shall be made only where the Government has equity of fifty one percentum or
more.

(c)
Notwithstanding anything contained in this Act, the Registrar in case of the
co-operative bank, if so required by the Reserve Bank or the NABARD on
requisition from the Reserve Bank to supersede management of a co-operative
bank, the Registrar shall supersede the management of such a co-operative
bank.

(2)
The Registrar may fix such remuneration, if any, for the administrator(s) as
he may think fit and such remuneration shall be paid out of the funds of the
co-operative society.

(3)
The administrator shall, subject to the control of the Registrar and to such
instructions as he may from time to time give, exercise powers and perform
functions of the committee or of any officer of the co-operative society and
take all such actions as may be required in the interest of the co-operative
society, but shall not be empowered to enroll new members.

(4)
The administrator shall call the general body meeting of the co-operative
society to spell out his plan of action.

(5)
The administrator shall before expiry of his term of office, arrange for the
constitution of a new committee in accordance with the rules and the
bye-laws of the co-operative society.

(6)
Before passing any order under clause (b) of sub-section (1) in respect of a
co-operative society the Registrar shall, at first, consult the financing
bank or the financing institution to which it is indebted :

Providedthat where the co-operative society is
a co-operative bank, before issuing a show cause notice under sub-section
(1) prior consultation with the Reserve Bank shall be necessary :

Provided
further that on a requisition of the Reserve Bank to supersede the Board of
a co-operative bank, the Registrar shall supersede the committee of such a
co-operative bank.

(7)
Notwithstanding anything contained in this Act, the Registrar shall in the
case of a co-operative bank, if so required in writing by the Reserve Bank
or NABARD in the public interest or for preventing the affairs of the
co-operative bank being conducted in a manner detrimental to the interest of
the depositors or for securing the proper management of a co-operative bank,
pass an order for the supersession of the committee of that co-operative
bank and appoint an administrator therefor, for such period or periods not
exceeding five hundred and fifty days in the aggregate, as may, from time to
time be specified by the Reserve Bank.

38.
(1) (a) If the records, registers or
the books of account of a co-operative society are likely to be tampered
with or destroyed and the funds and property of a co-operative society are
likely to be misappropriated or misapplied; or

(b)
if the committee of a co-operative society is reconstituted at general body
meeting of the co-operative society or the committee of a co-operative
society is removed by the Registrar under section 37 or if the co-operative
society is ordered to be wound up under section 95, section 96 or section 97
and the outgoing members of the committee refuse to hand over charge of the
records and the property of the co-operative society within fifteen days of
notice by the new committee or administrator or the liquidator to those
having or entitled to receive such charge;

(c)
the newly elected committee or administrator or the liquidator, as the case
may be, on expiry of fifteen days notice shall apply to the Registrar, who
on application by the newly elected committee, administrator, the liquidator
or suo-motu, if satisfied, may approach the Divisional Commissioner to
authorise the Sub-divisional Magistrate in whose jurisdiction the registered
office of the society is located, in the prescribed form setting forth the
reasons therefor, to enter, search or break open any premises where such
records and properties of the society are kept and seize any such records
and properties of the society and to cause delivery to the new committee,
administrator or the liquidator of the records and properties of the
society.

(2)
For the purpose of the proceedings under sub- section (1), the authorization
aforesaid shall be conclusive evidence that the records and properties to
which it related belong to the society.

(3)
The officer authorised under sub-section (1) may take such police assistance
as may be necessary for the said purpose and the expenses incurred under
this section shall be borne from the funds of the society.

(4)
The provisions of section 100 to 102 (both inclusive) of the Code of
Criminal Procedures, 1973 (Central Act, 2 of 1974) relating to searches and
seizure shall apply, so far as may be, to searches and seizure under this
section.

39.
No act of a co-operative society or of
any committee or of any officer shall be deemed to be invalid by reason only
of the existence of any defect in procedure or in the constitution of the
co-operative society or of the committee or in the appointment or election
of an officer or on the ground that such officer was disqualified for his
appointment.

40.
Any member of a co-operative society
(other than a co-operative housing society) may be expelled by a resolution
passed by the committee of the co-operative society subject to the approval
of such resolution by the Registrar if :

(i)
the member has wilfully deceived the co-operative society by false document
to obtain the membership of such co-operative society; or

(ii)
the member incurs any of the disqualifications for being a member of the
co-operative society; or

(iii)
the member has brought disrepute to the co-operative society or has done any
other act detrimental to the interest and proper working of the co-operative
society:

Providedthat the member concerned shall not be
expelled unless he has been given a reasonable opportunity to represent
himself in the matter:

Providedfurther that no member shall be
expelled unless the resolution for such expulsion is passed by a majority of
not less than three-fourths of the members present and entitled to vote in
the meeting of the committee and no resolution for expulsion shall be valid
unless approved by the Registrar.

(2)
After the resolution for expulsion is passed as above by the committee, the
resolution shall be referred to the Registrar for approval within a period
of thirty days.

(3)
On receipt of the resolution for expulsion, the Registrar shall take
cognizance of such resolution within thirty days and pass a final order
either approving the expulsion or rejecting the proposal for expulsion
within a period of one hundred and eighty days and if the matter is not
decided by the Registrar within the aforesaid period, the expulsion of such
a member shall be deemed have been approved:

Providedthat the Registrar, before approving
the resolution, shall hear the parties in the manner prescribed and shall
have power to summon and enforce attendance of witness including the parties
interested or any of them and compel them to give evidence on oath,
affirmation or affidavit and to compel production of documents by the same
means as far as possible in the same manner as provided in the case of a
civil court under the Code of Civil Procedure, 1908 (5 of 1908) and the
order under this section so passed by the Registrar shall be final with a
right for appeal before the Tribunal.

(4)
Any party aggrieved by the order of the Registrar or deemed approval of
expulsion, as the case may be, under sub-section (3) may, within sixty days
from the date of such order, appeal to the Tribunal.

41.
(1) Notwithstanding anything contained in this Act, a person shall cease to
be a member of a cooperative society -

(a)
on his resignation from such membership; or

(b)
on his death, if there is no claim by the nominee or legal heirs within
three hundred sixty five days; or

(c)
on transfer of the whole of his share or interest in that cooperative
society; or

(d)
on his expulsion or incurring any disqualification for being a member of
that cooperative society.

(2)
If any question as to whether a member has incurred any of the
disqualifications mentioned in sub-section (1), it shall be referred to the
Registrar for his decision, whose decision shall be final and binding.

(3)
The Registrar may of his own motion, if satisfied that any member has
incurred any of the disqualification under sub-section (1) declare through
an order in writing that such member is disqualified to be a member :

Provided
that no such order shall be passed without affording opportunity of being
heard to such member as prescribed.

42.
The Registrar may from time to time issue such directions or directives to a
co-operative society or a class of co-operative societies as he considers
necessary for successful conduct of business and on all matters incidental
thereto and such directions or directives shall be binding on them.

Provided
that this power shall be limited to cooperative society with government
equity of fifty one percentum or more.

43.
The registration of a co-operative society shall render it a body corporate
by the name under which it is registered having perpetual succession and a
common seal, and with power to hold property, enter into contract, institute
and defend suits and other legal proceedings and do all things necessary for
the purposes for which it is constituted.

44.
(1) Notwithstanding anything contained
in this Act or any other law for the time being in force, but subject to any
prior claim of the Government in respect of land revenue or any money
recoverable as land revenue, any debt or outstanding demand owing to a
co-operative society by any member or past member or deceased member shall
be a first charge upon the crops and other agricultural produce, cattle,
fodder for cattle, agricultural or industrial implements or machinery, raw
materials for manufacture and any finished products manufactured from such
raw materials, belonging to such member, past member or forming part of the
estate of the deceased member, as the case may be.

(2)
No person shall transfer any property which is subject to a charge under
sub-section (1) except with the prior permission in writing of the
co-operative society which holds the charge.

(3)
Notwithstanding anything contained in any law for the time being in force,
any transfer of property made in contravention of the provisions of
sub-section (2) shall be void.

(4)
The charge created under sub-section (1) shall be available as against any
claim of the Government arising from a loan granted under the Land
Improvement Loans Act, 1883, (19 of 1883) or the Agriculturist's Loans Act,
1884, (12 of 1884) after the grant of the loan by the co-operative society.

45.
Notwithstanding anything contained in
this Act or in any other law for the time being in force -

(i)
any person who makes an application to a co-operative society of which he is
a member for a loan shall, if he owns any land or has interest in any land
as tenant, make a declaration in the prescribed form which shall state that
the applicant thereby creates a charge on such land or interest specified in
the declaration for the payment of the amount of loan which co-operative
society may make to the member in pursuance of the application and for all
future advances, if any, required by him which the co-operative society may
make to him as such member subject to such maximum as may be determined by
the co-operative society together with the interest on such amount of loan
and advances;

(ii)
a declaration made under clause (i) may be varied at any time by a member
with the consent of the co-operative society in favour of which such charge
is created;

(iii)
no member shall alienate the whole or any part of the land or interest
therein specified in the declaration made under clause (i) until the whole
amount borrowed by the member together with interest thereon is paid in
full:

Provided
that for the purpose of paying in full to the co-operative society the whole
amount borrowed by the member together with interest thereon, the member
may, with the previous permission in writing of the co-operative society and
subject to such conditions as the co-operative society may impose, alienate
the whole or any part of such land or interest thereon :

Provided
further that standing crops on any such land may be alienated with the
previous permission of the co-operative society;

(iv)
any alienation made in contravention of the provisions of clause (iii) shall
be void;

(v)
subject to the prior claims of the Government in respect of land revenue or
any money recoverable as land revenue, there shall be a first charge in
favour of the co-operative society on the land or interest specified in the
declaration made under clause (i) for and to the extent of the dues owing by
him on account of the loans and advances;

(vi)
the record of rights shall also include the particulars of every charge on
land or interest created under a declaration under clause (i)
notwithstanding anything contained in any law relating to land revenue for
the time being in force;

(vii)
any sum due to a co-operative society in consequence of charge created under
a declaration under clause (i) shall, on application of its recovery being
made by such co-operative society accompanied by a certificate signed by the
Registrar, be recoverable by the Collector, according to the law and under
the rules for the time being in force for the recovery of land revenue.

Explanation.
- For the purposes of this section, "co-operative society" shall
mean any co-operative society or class of co-operative societies specified
in this behalf by the Government by a general or special order.

46.
A co-operative society shall have a
charge upon the share or contribution or interest in the capital and on the
deposit of a member or past member or deceased member and upon any dividend,
bonus or profits payable to a member or past member or the estate of a
deceased member in respect of any debt due from such member or past member
or the estate of such deceased member to the co-operative society, and may
set-off any sum credited or payable to a member or past member or the estate
of deceased member in or towards payment of any such debt.

47.
Subject to the provisions of section
45, the share or contribution or interest of a member or past member or
deceased member in the capital of a co-operative society shall not be liable
to attachment or sale under any decree or order of any court in respect of
any debt or liability incurred by such member, and a receiver under the
Provincial Insolvency Act, 1920 (5 of 1920) shall not be entitled to or have
any claim on such share or contribution or interest.

49.
(1) A copy of any entry in a book of a co-operative society regularly kept
in the course of its business shall, if certified in such manner as may be
prescribed, be received in any suit or legal proceedings as prima facie
evidence of the existence of such entry, and shall be admitted as evidence
of the matters, transactions and accounts therein recorded in every case
where, and to the same extent as, the original entry itself is admissible.

(2)
No officer of a co-operative society and no officer in whose office the
books of a co-operative society are deposited after liquidation shall, in
any legal proceedings to which the co-operative society or the liquidator is
not a party, be compelled to produce any of the co-operative society's books
or documents the contents of which can be proved under this section, or to
appear as a witness to prove the matters, transactions and accounts therein
recorded, except under order of the court or the arbitrator made for special
cause.

50.
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the
Registration Act, 1908 (16 of 1908) shall apply to -

(1)
any instrument relating to shares in a co-operative society notwithstanding
that the assets of the co-operative society consist in whole or in part of
immovable property; or

(2)
any debenture issued by any such co-operative society and not creating,
declaring, assigning, limiting or extinguishing any right, title or interest
to or in immovable property, except in so far as it entitles the holder
thereof to the security afforded by a registered instrument whereby the
co-operative society has mortgaged, conveyed or otherwise transferred the
whole or part of its immovable property or any interest therein to trustees
upon trust for the benefit of the holders of such debentures; or

(3)
any endorsement upon or transfer of any debenture issued by any such
co-operative society.

51.
(1) The Government may, by notification in the Official Gazette, remit in
respect of any class of co-operative societies -

(a)
the stamp duty chargeable under any law for the time being in force in
respect of any instrument executed by or on behalf of a co-operative society
or by an officer or member thereof and relating to the business of such
co-operative society or any class of such instruments or in respect of any
award or order made under this Act, in cases, where, but for such remission
the co-operative society, officer or member, as the case may be, would be
liable to pay such stamp duty; and

(b)
any fee payable under any law for the time being in force relating to the
registration of documents or court fees.

(2)
The Government may, by notification in the official Gazette, remit in
respect of any class of co-operative societies -

(a)
land revenue;

(b)
taxes on agricultural income; and

(c)
taxes on professions, trades, callings and employments.

Provided
that the aforesaid exemption shall not include exemption in respect of
Central sales taxes or Central taxes or duties or levies.

52.
(1) Notwithstanding anything contained
in any law for the time being in force, a member of a co-operative society
may execute an agreement in favour of the co-operative society providing
that his employer shall be competent to deduct from the salary or wages
payable to him by the employer, such amount as may be specified in the
agreement and to pay the amount so deducted to the co-operative society in
satisfaction of any debt or other demand owing by the member to the
co-operative society.

(2)
On the execution of such agreement, the employer shall, if so required by
the co-operative society by a requisition in writing and so long as the
co-operative society does not intimate that the whole of such debt or demand
has been paid, make the deduction in accordance with the agreement and pay
the amount so deducted to the co-operative society, as if it were a part of
the salary or wages payable on the day as required under the Payment of
Wages Act, 1936 (4 of 1936). Such payment shall be valid discharge of the
employer for his liability to pay the amount deducted.

(3)
Where a requisition in writing from any co-operative society registered or
deemed to be registered in any reciprocating State/Union territory in
respect of a member of that co-operative society, who has executed any such
agreement as is referred to in sub-section (1) and who, for the time being,
is employed in Delhi,is received by his employer, the requisition
shall be acted upon as if it had been made by a co-operative society in
Delhi and the provisions of this section shall have effect accordingly.

Explanation-For
the purpose of this sub-section "reciprocating State/Union
territory" means any State or
Union
territory which the Government may, by notification in the official Gazette,
declare to be reciprocating State/Union territory.

(4)
If, after the receipt of a requisition made under sub-section (2) or
sub-section (3), the employer at any time fails to deduct the amount
specified in the requisition from the salary or wages payable to the member
concerned or makes default in remitting the amount deducted to the
co-operative society, the co-operative society shall be entitled to recover
any such amount from the employer as arrears of land revenue and the amount
so due from the employer shall rank in priority in respect of the liability
of the employer equal to that of the wages in arrears.

(5)
Nothing contained in this section shall apply to an establishment under a
railway administration operating any railway as defined in clause (20) of
article 366 of the Constitution.

53.
No part of the funds other than net profits of a co-operative society shall
be divided by way of bonus or dividend or otherwise distributed among its
members :

Provided
that after at least one-fourths of the net profits in the year has been
carried to the reserve fund, payments from the remainder of such profits and
from any profits of past years available for distribution may be made to the
member to such extent and under such conditions as may be prescribed by the
rules or bye-laws.

54.
Any co-operative society may, with the
prior approval of the general body, after one-fourths of the net profits in
any year has been carried to the reserve fund, contribute an amount not
exceeding five per cent of the remaining net profits to any purpose
connected with the development of co-operative movement or charitable
purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of
1890).

55.
A co-operative society shall out of
its net profits in any year credit such portion of the profits not exceeding
five per cent as may be prescribed to the Co-operative Education Fund
constituted under the rules.

58.
(1) A co-operative society may receive deposits, raise loans and receive
grants from external sources to such extent and under such conditions as may
be specified in the bye-laws:

Providedthat the total amount of deposits and
loans received during any financial year shall not exceed ten times of the
sum of subscribed share capital and accumulated reserves:

Provided
further that while calculating the total sum of subscribed share capital
accumulated reserves, the accumulated losses shall be deducted.

(2)
Subject to the provisions of sub-section (1), a cooperative society may
accept funds or borrow fund for the fulfillment of its objects as are
mutually contracted upon and approved by the general body of members of the
co-operative society.

(3)
A co-operative society may issue non-convertible debentures or other
instruments subject to the provisions of any law for the time being in force
to raise resources for fulfillment of its objectives to the extent of twenty
five per cent of its paid up share capital with the approval of general body
of members with a provision for redemption fund for its repayment on
maturity:

Provided
that in case of borrowing by a co-operative bank, it shall be in accordance
with the directions, instructions and guidelines issued by the Reserve Bank
from time to time.

59.Save as provided in section 57 and
section 58, the transactions of a co-operative society with any person other
than a member shall be subject to such prohibitions and restrictions, if
any, as may be prescribed.

60.
(1) A co-operative society shall get its accounts audited annually by an
auditor selected from the panel prepared by the Registrar in the prescribed
manner within the period of sixty days from the close of co-operative year.

(2)
The audit under sub-section (1) shall include an examination of overdue
debts, if any, the verification of the cash balance, securities and a
valuation of the assets and liabilities of the co-operative society :

Provided
that in the case of a co-operative group housing society where land has been
allotted, the audit report shall contain a separate chapter regarding
detailed financial working of the co-operative society before construction,
during construction, and on allotment of flats to members, detailing
individual investment, defaults if any, by an individual, action taken by
the committee in case of default, etc. :

Provided
further that the Registrar shall be competent to issue guidelines and
instructions in this regard from time to time.

(3)
The person auditing the accounts of a co-operative society shall have free
access to the books, accounts, papers, vouchers, stock and other property of
such co-operative society and shall be allowed to verify its cash balance
and securities.

(4)
The directors, managers, administrators and other officers of the
co-operative society shall furnish to the person auditing the accounts of a
co-operative society all such information as to its transactions and working
as such person may require.

(5)
It shall be the duty of the committee of the co-operative society to ensure
that its accounts are audited annually and the audit report presented for
consideration in annual general body meeting of the co-operative society as
provided in section 31 and a copy of the audit report shall also be
forwarded by the co-operative society to the Registrar for his information
and record.

(6)
On failure to get the audit of the co-operative society conducted in time,
the Registrar shall get the audit conducted and fee paid shall be a charge
against the delinquent officers of the committee and shall be recoverable
from them as an arrears of land revenue as provided in section 111.

(7)
The auditor appointed under sub-section (1) to audit the accounts of a
co-operative society shall have power where necessary -

(a)
to summon at the time of his audit any officer, agent, servant or member of
the co-operative society , past or present, who he has reason to believe can
give valuable information in regard to transactions of the co-operative
society or the management of its affairs; and

(b)
to require the production of any book or document relating to the affairs
of, or any cash or securities belonging to, the co-operative society by any
officer, agent, servant, or member in possession of such books, documents,
cash or securities and in the event of serious irregularities discovered
during audit, to take them into custody.

(8)
If at the time of audit the accounts of a co-operative society are not
complete, the Registrar or the person authorised by him under sub-section
(1) to audit, may cause the accounts to be written up at the expense of the
co-operative society.

(9)
Audit fee, if any, due from co-operative society shall be recoverable in the
same manner as is provided in section 111.

61.
(1) The Registrar may, on the request
made by a creditor or, not less than one thirds of the members of the
committee, or not less than one fifths of the total number of members, of a
co-operative society, undertake inspection of a co-operative society or
class of co-operative societies by general or special order in writing and
authorise any person by order in writing in this behalf, to make an
inspection into the constitution, working and financial condition of a
co-operative society.

(2)
For the purpose of inspection under sub-section (1), the Registrar or a
person authorised by him under that sub-section shall at all times have
access to all books, accounts, papers, vouchers, securities, stock and other
property of that society and may, in the event of serious irregularities
discovered during inspection, take into custody and shall have power to
verify the cash balance of the society and subject to general or special
order of the Registrar, call a meeting of the committee and also a general
body meeting of the society, where general body meeting is, in his opinion,
necessary.

(3)
Every officer or member of a co-operative society shall furnish such
information with regard to working of the society as the Registrar or the
person making such inspection may require.

(4)
A copy of the inspection under this section shall be communicated to the
co-operative society within a period of ninety days from the date of
completion of such inspection.

62.
(1) The Registrar may on the basis of findings of audit or inspection under
section 61 or request from any creditor, or not less than one-thirds of the
total members of the co-operative society, by general or special order in
writing in this behalf, hold an inquiry or direct any of the subordinate
officials authorised by general or special order in this behalf to hold an
inquiry in respect of such matters and such period as may be specified in
this order, into the constitution, business, management and financial
affairs of a co-operative society and such enquiry shall be completed within
such period as may be specified in the order but not exceeding ninety days.

(2)
The Registrar or the official authorised by him under sub-section (1) shall
have the following powers, namely -

(a)
he shall at all times have, for purpose of examination free access to the
books, accounts, cash and other properties belonging to, or in the custody
of, the co-operative society and may summon any person in possession or
responsible for the custody of any such books, accounts, documents,
securities, cash or other properties to produce the same at any place
specified by him;

(b)
he may, notwithstanding any rule or bye-laws specifying the period of notice
for a general body meeting of the co-operative society, require the officers
of the co-operative society to call a general body meeting at such time and
place at the headquarters of the co-operative society to consider such
matter as may be directed by him and where the officer of the co-operative
society refuse or fail to call such a meeting, he shall have power to call
it himself;

(c)
he may summon any person who is reasonably believed by him to have any
knowledge of the affairs of the co-operative society to appear before him at
any place at the headquarters of the co-operative society or any branch
thereof and may examine such person on oath.

(3)
Any meeting called under clause (b) of sub-section (2) shall have all the
powers of a general body meeting called under the bye-laws of the
co-operative society and its proceedings shall be regulated by such
bye-laws.

(4)
The Registrar shall supply a copy of the report of the inquiry to the
co-operative society, the financing institution, federal co-operative
society if any, to which the co-operative society is affiliated and indebted
and also to the person or authority, if any, at whose instance the inquiry
is made.

63.
(1) The Registrar shall, on the application of creditor of a co-operative
society, inspect or direct a subordinate official authorised by him by order
in writing in this behalf, to inspect the books of the co-operative society
:

Provided
that no such inspection shall be made unless the applicant -

(a)
satisfies the Registrar that the debt is sum then due, and that he has
demanded payment thereof and has not received satisfaction within a
reasonable time; and

(b)
deposits with the Registrar such sum as security for the costs of proposed
inspection as the Registrar may require.

(2)
The Registrar shall communicate the result of any such inspection to the
creditor.

64.
Where an inspection is held under
section 61, or an inquiry is made under sections 62, the Registrar may
apportion the costs or such part of the costs as he may think fit, between
the co-operative society, the members or creditor demanding an inspection or
inquiry if any and the officers or former officers and the members or past
members of the co-operative society :

Provided
that -

(a)
no order of the apportionment of the costs shall be made under this section
unless the co-operative society or the person liable to pay the costs
thereunder has had reasonable opportunity of being heard;

(b)
the Registrar shall state in writing under his own hand the grounds on which
the costs are apportioned.

66.
(1) If in the course of an audit,
inspection, inquiry or the winding up of a co-operative society, it is found
that any person who is or was entrusted with the organisation or management
of such co-operative society or who is or has at any time been an officer or
an employee of the co-operative society had made any payment contrary to
this Act, the rules or the bye-laws or has caused any deficiency in the
assets of the co-operative society by breach of trust or wilful negligence
or has misappropriated or fraudulently retained any money or other property
belonging to such co-operative society, the Registrar may, of his own
motion, or on the application of the committee, liquidator or any creditor,
inquire himself or direct any person authorised by him by an order in
writing in his behalf, to inquire into the conduct of such person.

(2)
Where an inquiry is made under sub-section (1), the Registrar may, after
giving the person concerned an opportunity of being heard make an order
requiring him to repay or restore the money or property or any part thereof
with interest at such rate or to pay contribution and costs or compensation
to such extent as the Registrar may consider just and equitable.

(3)
Any sum ordered under this section to be repaid to a co-operative society or
recovered as a contribution to its assets may be recovered on a requisition
being made in this behalf by the Registrar to the Collector in the same
manner as arrears of land revenue.

(4)
This section shall apply notwithstanding that such person or officer or
servant have incurred criminal liability by this Act.

67.
The Registrar shall draw the attention
of the co-operative society to the defects noticed in every audit conducted
under section 60 or inspection held under section 61 or inquiry made under
section 62 or inspection of books made under section 63 and if the
co-operative society is affiliated to federal co-operative society also draw
the attention of that federal co-operative society and may make an order
directing the co-operative society or its officers to take such action and
within such time as may be specified therein to remedy such defects.

68.
(1) The Registrar, or the auditor or
any person authorised by either of them to exercise any powers under this
Act shall at all reasonable times have free access to the books, accounts,
documents, records, securities, cash and other properties belonging to, or
in the custody of the co-operative society and may summon any person in
possession of, or responsible for the custody of any such books, accounts,
documents, records, securities, cash or other properties, to produce all or
any of them at any place at the headquarters of the co-operative society or
any branch thereof.

(2)
The Registrar or any other subordinate official authorised by him to
exercise any powers under this Act -

(a)
may summon any person who, he has reason to believe has knowledge of any of
the affairs of the co-operative society to appear before him at any place at
the headquarters of the co-operative society or any branch thereof or at any
other place specified by the Registrar, and may examine that person on oath;

(b)
may seize the books, accounts or documents belonging to, or in the custody
of, the co-operative society, if he considers that such seizure is necessary
to ensure safety of such books, accounts or documents, and shall give the
person from whose custody the books, accounts or documents have been seized,
a receipt for the same :

Provided
that the books, accounts or documents so seized shall be retained by him
only for so long as may be necessary

Provided
further that the books, accounts or documents so seized shall not be
retained for more than sixty days at a time except with the permission of
the next higher authority.

69.
(1) The paid executive of every co-operative society by whatsoever
designation he is called, or the president or any other office bearer as
provided in the bye-laws of the co-operative society, if there is no such
paid executive for that co-operative society, shall be bound to keep,
maintain or cause to be maintained such accounts and books relating to that
co-operative society in such manner as may be prescribed and shall be
responsible for the correct and up-to-date maintenance of such accounts and
books, for producing or causing production of the same when called for in
connection with audit, inspection or inquiry.

(2)
If such accounts and books are not maintained, the Registrar may direct the
person who is responsible to bring the accounts and books up-to-date to make
them up-to-date, and he shall be bound to comply with such direction within
the period specified therein.

(3)
If the person fails to comply with the direction under sub-section (2), the
Registrar may ask the committee of the co-operative society for taking
action against such person including suspension for such period, if
necessary, as he may consider necessary and authorise any person to take
action for bringing such accounts and books up-to-date at the expenses of
the co-operative society and such expenses shall be recoverable from the
co-operative society as if it were an arrear of land revenue.

(4)
Where the Registrar takes action under sub- section (3), the Registrar may
call upon the person concerned whom he considers to be responsible for not
complying with the direction made under sub-section (2) and after giving
such person an opportunity of being heard, may require him to pay to the
co-operative society the expenses paid or payable by him to the Government
as a result of his failure to take action.

70.
(1) Notwithstanding anything contained in any law for the time being in
force, if any dispute touching the constitution, management or the business
of a co-operative society other than a dispute regarding disciplinary action
taken by the co-operative society or its committee against a paid employee
of the co-operative society arises -

(a)
among members, past members and persons claiming through members, past
members and deceased members; or

(b)
between a member, past member or person claiming through a member, past
member or deceased member and the co-operative society, its committee or any
officer, agent or employee of the co-operative society or liquidator, past
or present; or

(c)
between the co-operative society or its committee and any past committee,
any officer, agent or employee, or any past officer, past agent or past
employee or the nominee, heirs or legal representatives of any deceased
officer, deceased agent, or deceased employee of the co-operative society;
or

(d)
between the co-operative society and any other co-operative society, between
a co-operative society and liquidator of another co-operative society or
between the liquidator of one co-operative society and the liquidator of
another co-operative society;

such
disputes shall be referred to the Registrar for decision and no court shall
have jurisdiction to entertain any suit or other proceedings in respect of
such disputes.

(2)
If any question arises whether a dispute referred to the Registrar under
this section is or is not a dispute touching the constitution, management or
the business of a co-operative society, the decision thereon of the
Registrar shall be final and shall not be called in question in any court.

(3)
The Registrar shall decide the aforesaid question within a period of ninety
days and in case the aforesaid question, as enumerated under sub-section (2)
is not decided within the stipulated period of ninety days, the dispute
shall be deemed to have been admitted under section 70 of this Act and the
same shall be referred for decision under section 71.

(4)
(a) Notwithstanding anything contained in the Limitation Act, 1963 (36 of
1963), but subject to the specific provisions made in this Act, the period
of limitation in the case of a dispute referred to the Registrar under
sub-section (1) shall -

(i)
when the dispute relates to the recovery of any sum including interest
thereon due to a co-operative society by a member thereof, be computed from
the date on which such member dies or ceases to be member of the
co-operative society, be three years;

(ii)
save as otherwise provided in sub-clause (iii), when the dispute relates to
any act or omission on the part of any of the parties referred to in clause
(b) or clause (c) of sub-section (1), be six years from the date on which
the act or omission with reference to which the dispute arose or took place;

(iii)
when the disputes relates to a co-operative society which has been ordered
to be wound up under section 95 or section 96 or section 97 or in respect of
which an administrator has been appointed under section 37, be six years
from the date of the order issued under section 95 or section 96 or section
97 or section 37, as the case may be; and

(iv)
when the dispute is in respect of an election of an officer of a
co-operative society be thirty days from the date of the declaration of the
result of the election.

(b)
The period of limitation in the case of any other dispute except those
mentioned in the foregoing clause which are required to be referred to the
Registrar shall be regulated by the provisions of the Limitation Act, 1963
(36 of 1963), as if the dispute was a suit and the Registrar a civil court.

(c)
Notwithstanding anything contained in clauses (a) and (b), the Registrar may
admit a dispute after the expiry of the period of limitation, if the
applicant satisfies the Registrar that he had sufficient cause for not
referring the dispute within such period and the dispute so admitted shall
be a dispute which shall not be barred on the ground that the period of
limitation has expired.

(5)
Save as otherwise provided under this Act, the provisions of the Arbitration
and Conciliation Act, 1996 (26 of 1996) shall apply to all arbitrations
under this Act, as if proceedings for arbitration were referred for
settlement or decision under the provisions of the Arbitration and
Conciliation Act, 1996.

71.
(1) The Registrar on the receipt of reference of dispute under section 70
shall -

(a)
decide the dispute himself, or

(b)
refer it for disposal to arbitration council.

(2)
The Government shall constitute as many arbitration councils as may be
necessary each consisting of three members including a Chairman, to decide
disputes under this section.

(3)
(a) For selecting persons for appointment as members of the arbitration
council, the Government shall constitute a selection committee as often as
may be required which shall consist of the following namely -

(i)
Principal Secretary to the Government - Chairman

(ii)
Secretary, Law and Judicial - Member

(iii)
Registrar Co-operative Societies - Member Secretary

(b)
The selection committee shall finalise within a period of thirty days from
the date on which the reference is made to it.

(c)
The selection committee shall recommend a panel of names for every vacancy
referred to it.

(d)
All decisions of the selection committee shall be by majority.

(4)
The Government shall appoint the member of the arbitration council from the
names recommended by the selection committee.

(5)
The method, manner of selection, appointment of members of the arbitration
council, designation of one of the members as Chairperson of such council,
their qualifications, terms and conditions of appointment and fee payable to
them shall be prescribed by the Government from time to time.

(6)
The term of members of the arbitration council shall be three years and they
shall hold their office at the pleasure of the Government.

(7)
The decision of the arbitration council shall be taken on the basis of
majority.

(8)
The Registrar or arbitration council will decide the dispute referred within
a period of one hundred and twenty five days and if the dispute is not
decided within the aforesaid period, the Registrar or arbitration council,
as the case may be, on a written application from the parties to the
reference and on being satisfied that there were sufficient reasons for
delay, may extend the period upto further period of one hundred and twenty
five days, within which the dispute shall be decided.

(9)
The Registrar may withdraw any reference transferred under clause (b) of
sub-section (1) and decide it himself or refer the same to another
arbitration council for decision.

(10)
The Registrar or arbitration council to whom a dispute is referred for
decision under this section may, pending the decision of the dispute, make
such interlocutory orders as may be deemed necessary in the interest of
justice.

72.
(1) If a co-operative society is
unable to pay its debts to a financing bank or a federal co-operative
society by reason of its members committing default in the payment of the
moneys due by them, the financing bank or the federal co-operative society
as the case may be, may direct the committee of such a co-operative society
to proceed against such members under section 71 and if the committee fails
to do so within a period of ninety days from the date of receipt of such
direction, the financing bank or the federal co-operative society itself may
proceed against such members in which case the provisions of this Act, the
rules or the bye-laws shall apply as if all references to the co-operative
society or its committee in the said provisions were references to the
financing bank or the federal co-operative society.

(2)
Where a financing bank or federal co-operative society has obtained a decree
or award against a co-operative society in respect of moneys due to it from
the co-operative society, the financing bank or the federal co-operative
society may proceed to recover such moneys firstly, from the assets of the
co-operative society and secondly, from the members to the extent of their
debts due to the co-operative society.

(a)
"allottee" means a member of a co-operative housing society to
whom a plot of land or a site, or a flat in a building or complex held by
it, is allotted by the co-operative society;

(b)
"apex" means the Delhi Co-operative Housing Finance Corporation
Ltd; a co-operative society registered to provide long term finances for
construction, development of infrastructure, bridge loan for land etc.,
against certain securities or sureties for construction, purchase of land,
etc.;

(c)
"building fund" means a fund created by the collection of
contributions from members for -

(i)
the purchase and or acquisition of land; or

(ii)
the land development; or

(iii)
the construction of dwelling units in a complex or buildings; or

(iv)
for the purpose of providing any other common amenities to achieve the
objectives of the co-operative housing society;

(d)
"building maintenance fund" means a fund created by collection of
the contribution from its members at such rate as may be determined by the
general body meeting of the members annually as a part of budget provision
for carrying out repairs or structural additions, improvements or
alterations to the property of the co-operative housing society which is
likely to increase the life of such property and to maintain the property of
the said society in good and habitable conditions at all times;

(e)
"co-operative housing society" means a co-operative society -

(i)
registered or deemed to be registered as a co-operative housing society
under this Act;

(ii)
the principal object of which is to provide its members open plots under
plot housing, dwelling units or flats (whether in a multi-storeyed building
or otherwise) in a complex under group housing and in case where open plots
or dwelling units or flats are already acquired to provide its members
common amenities and services including services relating to the arrangement
of finances for facilitating construction of dwelling units in order to
solve their needs of dwelling units through mutual-aid in accordance with
the co-operative principles, and includes a house building, co-partnership,
co-ownership housing society, co-operative housing maintenance society,
multipurpose co-operative housing society and any other co-operative society
of like nature and purpose;

(iii)
"co-operative housing maintenance society" means a co-operative
society formed by the owners of dwelling units in a building for the purpose
of maintenance of the building and provisions of common amenities, services,
etc;

(iv)
"co-ownership co-operative housing society" means a co-operative
society known as "house building" or plotted society in which the
land is held either on lease-hold or free-hold basis by the co-operative
society and the houses constructed on it are owned or to be owned by its
members;

(v)
"co-partnership co-operative housing society" known as group
housing means a co-operative society in which land and buildings are held by
the co-operative society on lease-hold or free hold basis and members are
allotted flats or such other premises in such buildings with a right to
occupy the same in accordance with terms of lease, Government's guidelines
and the bye-laws of such group housing;

(vi)
"multi-purpose co-operative housing society" means a society
formed with the object of undertaking multifarious activities for the
economic and social development of its members, particularly of slum
dwellers and economically weaker sections of the people, in addition to
providing better housing accommodation and better environment to improve
their quality of life;

(f)
"dwelling unit" includes a house, flat and apartment for the
purpose of dwelling;

(g)
"external repairs" means all structural repairs and repairs
required to be carried out to the property of the co-operative society the
use of which is common to two or more members, and includes repairs of
common walls, external walls, roads, lifts, water tanks, electric pumps,
staircases, terraces and parapet walls, roofs of flats, street lights,
electric lines, all leakages of water, water pipelines, compound walls,
septic tanks, fencing, drainage, gates and other like common amenities;

(h)
"internal repairs" means such repairs as are not external repairs;

(i)
"maintenance fund" means periodical payments which are made by the
members or occupants of house or flat to meet the expenditure incurred by a
housing co-operative society towards providing of cleanliness, watch and
ward, landscape, water supply, lifts, maintenance services for sanitary,
electric fittings, drains, fire fighting system, generation sets, intercom
systems, etc. within the complex fixed annually by the general body meeting
of the members as a budget provision;

(j)
"National Housing Bank" means the National Housing Bank
established under the National Housing Bank Act, 1987 (53 of 1987);

(k)
"occupancy right" means the right of an allottee to possess and
use the plot of land, site or dwelling unit or flat allotted to him with
power to give it on hire or on lease and licence or to mortgage it or to
donate or to gift or to transmit it by will or by inheritance or to transfer
it after paying the transfer fee;

(l)
"outgoings" means ground rent, if any, municipal and other local
taxes, cesses, charges, water charges, electricity charges, revenue
assessments, expenses of management and maintenance, repairs to or
replacement of any property, insurance premium, other like expenses in
respect of the co-operative housing society on recurring or non-recurring
basis;

(m)
"sub-allottee" means an individual or body of persons, whether
incorporated or not, in whose favour the possession of the dwelling unit or
part thereof is transferred for a period of not less than ninety days, and
includes a tenant, licensee, paying guest and caretaker thereof;

(n)
"transfer fee" means fee payable to transfer the membership of a
member to another person in a co-operative housing society as provided in
section 91;

(o)
words and expressions defined in this Act and used, but not defined, in this
Chapter, shall have the same meanings, assigned to them in this Act.

75.
A co-operative housing society shall
not admit to its membership persons exceeding the number of dwelling units
or plots as the case may be, available for allotment in that co-operative
housing society.

76.
(1) Every member of a co-operative
housing society, whether registered before or after the commencement of this
Act, to whom plots of land or dwelling units have been allotted, shall be
issued certificate of allotment by the co-operative housing society under
its seal and signature in such form as may be prescribed.

(2)
Notwithstanding anything contained in the Transfer of Property Act, 1882 (4
of 1882), or the Registration Act, 1908 (16 of 1908), any allotment
(including re-allotment) of a plot of land or dwelling unit in a building of
a co-operative housing society to its member as per terms of allotment shall
entitle such member to hold such plot of land or dwelling unit with such
title or interest.

(3)
A member of a co-operative housing society shall not be entitled to any
title or interest in any plot of land or dwelling unit in a building of the
co-operative society until he has made such payment as may be specified by
the co-operative housing society towards the cost of such plot of land or
construction of such dwelling unit, as the case may be, to the co-operative
housing society.

(4)
The right, title and interest in a plot of land or dwelling unit in a
building of the co-operative housing society (including the undivided
interest in common areas and facilities) shall constitute a heritable and
transferable immovable property within the meaning of any law for the time
being in force :

Provided
that notwithstanding anything contained in any other law for the time being
in force, such land or building shall not be partitioned for any purpose
whatsoever.

(5)
Every member of a co-operative housing society shall be entitled to an
undivided interest in the common areas and facilities pertaining to the plot
of land or dwelling unit allotted to him, which shall be described in the
certificate of allotment as provided in sub-section (1).

(6)
Every member of a co-operative housing society in whose favour a plot of
land or a dwelling unit has been allotted shall have the right to use the
common areas and facilities as prescribed by the co-operative housing
society and in case of any violation by a member, the committee shall be
competent to recover it at the cost of the encroacher which also be
applicable with regard to the common areas under the control of the
co-operative housing society.

(7)
The work relating to the maintenance, repair and replacement of the common
areas and facilities (including additions or improvements thereto) shall be
carried out in accordance with the building rules of the concerned civic
authorities, or other competent authority, as the case may be, and the costs
thereof shall be apportioned amongst the members of the co-operative housing
society in such manner as may be determined and notified by the committee
from time to time.

77.
(1) Allotment of plots of land, flats, houses or other dwelling units shall
be made by the committee of a co-operative housing society to the members
strictly on the basis of draw of lots only in respect of such members whose
enrolment as a member of a co-operative housing society is found proper in
accordance with the provisions of this Act, rules framed thereunder and the
bye-laws of the co-operative housing society by the Registrar and such a
draw of lot shall be conducted by the lessor of the land in accordance with
the terms and conditions of lease.

(2)
If any draw of lot is held in violation of the above provisions it shall be
void and any financial loss on account of this shall be recovered as arrears
of land revenue from persons who were responsible for it and such persons
shall be debarred from holding any office in the co-operative housing
society in future.

(3)
Every member of a co-operative housing society, whether registered before or
after the commencement of this Act, to whom plots of lands, flats, houses or
other dwelling units have been allotted, shall be issued certificate of
occupancy by the co-operative housing society under its seal and signature
in such form, on such terms and on such conditions as may be prescribed and
such certificate shall be issued forthwith when all the dues as may be
determined and notified by the co-operative housing society are duly paid by
the member.

78.
(1)Every member of a
co-operative housing society shall nominate a person or persons to whom in
the event of his death his right and interest in such co-operative housing
society shall be transferred.

(2)
The member of the co-operative housing society shall have right to change
the nomination at any time.

(3)
There shall not be more than one nomination subsisting at any time:

Provided
that joint and more than one nomination within the blood relation shall be
permissible.

79.
Subject to the provisions of this Act,
in the case of a co-operative housing society, no transfer of share or
interest of a member or the occupancy right, except the transfer to his heir
or a nominee, shall be effective, unless -

(a)
the previous permission of the co-operative housing society has been
obtained by the transferor by paying the transfer fee;

(b)
the dues of the co-operative housing society are paid or transferred to the
transferee with the consent of the co-operative housing society;

(c)
the transferor vacates and gives possession of the premises to the
transferee; and

(d)
the transferee applies and acquires membership of the co-operative society :

Providedthat the transfer of share or interest
in respect of lease hold properties shall be governed by the terms of the
lease.

80.
(1) No co-operative housing society shall ordinarily refuse to grant to its
member permission for transfer of his occupancy right in the property of the
co-operative housing society unless the transferee is otherwise not
qualified to be a member :

Provided
that nothing contained in any agreement, contract or the bye-laws regarding
eligibility for membership stipulated therein shall apply to a nominee, heir
or legal representative of the deceased member for his admission to
membership of the co-operative housing society :

Provided
further that aforesaid transfer in case of lease hold land shall be governed
by the provisions of the perpetual lease of land.

(2)
The decision of the co-operative housing society on an application for
permission to such transfer shall be communicated to the applicant within
thirty days from the date of receipt of the application.

(3)
Any person aggrieved by the decision of the co-operative housing society
refusing permission for such transfer may within thirty days from the date
on which the refusal of permission is communicated to him appeal to the
Registrar.

(4)
The Registrar shall dispose of the appeal within a period of one hundred and
twenty five days whose decision shall be final.

81.
(1) A co-operative housing society
which owns land or building shall maintain a corpus of building maintenance
fund by collecting money from its members as their contribution to the
extent and in the manner as may be fixed annually by the general body
meeting.

(2)
The building maintenance fund shall be utilised only for the purposes of
repairs and maintenance of the building and for carrying out such structural
additions and alterations to the building which are essential for the safety
of the building and to increase its life.

(3)
The building maintenance fund of the co-operative housing society, when not
required by it for its immediate use, shall be invested with the apex or
financing bank.

(4)
A corpus for replacement fund shall be created annually through a budget
provision duly approved by the general body of members of the society and
shall be utilized only for replacement of building in course of time.

82.
Notwithstanding anything contained in
the Registration Act, 1908 (16 of 1908), it shall not be necessary to
register mortgages, executed in favour of co-operative housing society or
apex provided that the co-operative housing society or apex sends, within a
period of sixty days, a copy of the instrument whereby the property is
mortgaged or a written declaration creating a charge on such property in the
prescribed form and manner to the registering officer within whose
jurisdiction the whole or part of the mortgaged property is situated and
such registering officer shall file a copy or copies thereof, as the case
may be, in Book No.1 prescribed under section 51 of the Registration Act,
1908 (16 of 1908).

83.
(1) Notwithstanding anything contained
in any law relating to rents or any other corresponding law for the time
being in force in Delhi, any dispute relating to the occupation or recovery
of possession of any plot, dwelling unit or flat in any co-operative housing
society, the recovery of dues payable by a member or sub-allottee to a
co-operative housing society or vice-versa arising on or after the date of
the commencement of this Act and suits or proceedings pending in any court
after such commencement, shall be deemed to be a dispute within the meaning
of section 70 of this Act and shall be decided in accordance with the
provisions of this Act, and no court or other tribunal or authority shall
have jurisdiction to entertain and decide any proceedings in respect of such
disputes.

(2)
Notwithstanding anything contained in the law relating to rents or any other
corresponding law for the time being in force, no licensee, caretaker, or
sub-allottee who is occupying the dwelling unit or flat, or plot of land in
a co-operative housing society shall be a tenant of such dwelling unit or
flat or plot of land within the meaning of that law.

(3)
Where any property mortgaged to the co-operative housing society including
the apex, as the case may be, is wholly or partially destroyed or for any
reasons the security is rendered insufficient and the mortgagor having been
given reasonable opportunity to repay such portion of loan as may be
determined by the co-operative housing society or the apex, as the case may
be, has failed to provide such security or to such portion of loans, the
whole of the loan shall be deemed to fall due at once notwithstanding the
original terms on which the loan was advanced, and the co-operative housing
society or the apex, as the case may be, shall be entitled to take action
against the mortgagor for the recovery thereof.

(4)
All loans granted by the co-operative housing society or the apex, as the
case may be, and all interests chargeable thereon and costs incurred in
making the same, shall be recoverable when they become due by the
co-operative housing society or the apex, as the case may be.

(5)
If any installment payable under the mortgage executed in favour of the
co-operative housing society or the apex, as the case may be, or any
financial institution which the National Housing Bank, having regard to the
objects of this Chapter, has recognised for the purposes of this section,
being a financial institution whose main object is to provide housing
finance and any part of such installment has remained unpaid for more than
ninety days from the date on which it falls due, the co-operative housing
society or the apex or the said financial institution may, in addition to
any other remedy available to it, apply to the Registrar for the recovery of
such installments or part thereof as arrears of land revenue, who will
complete the enquiry to satisfy himself about the request within a period of
thirty days from the date of receipt of such application and shall either
issue a certificate for recovery as arrears of land revenue or reject it
after giving grounds for doing so within the said period of thirty days.

(6)
On the issuance of letter for execution of award, the right of the original
allottee member shall be suspended subject to the mortgage interest of the
mortgage and in case the property has been transferred through the
instrument of power of attorney and agreement for sale, the occupant as
power of attorney holder or purchaser of agreement for sale shall be deemed
as trespasser.

(7)
The committee shall give sixty days time to such a person to vacate the
premises failing which the committee shall take appropriate legal recourse
for implementation of the decision of the committee.

84.
(1) Notwithstandinganything contained in this Act, on an application
made by a co-operative housing society or the apex for the recovery of its
outgoings and of arrears of its dues of such sums advanced by it to any of
its members, on its furnishing statement of the accounts in respect of
arrears, the Registrar may, after making such inquiries as he deems fit,
grant a certificate for the recovery of the amount stated therein to be due
as arrears and such an enquiry shall be completed by the Registrar within
thirty days.

(2)
Where the Registrar is satisfied that the concerned co-operative housing
society has failed to take action under sub-section (1) in respect of any
amount due as arrears and outgoings, the Registrar may of his own motion,
after making such an enquiry as he deems fit, grant a certificate for the
recovery of the amount stated therein to be due as arrears and such a
certificate shall be deemed to have been issued as if issued on an
application made by the co-operative housing society or the apex concerned.

(3)
A certificate granted by the Registrar under sub-section (1) or sub-section
(2) shall be final and a conclusive proof of the arrears stated to be due
therein and the same shall be recoverable according to the law for the time
being in force for the recovery of arrears of land revenue.

(4)
It shall be lawful for the Collector and the Registrar to take precautionary
measures authorised by law until the arrears due to the co-operative housing
society or the apex, as the case may be, together with interest and any
incidental charges incurred in the recovery of such arrears are paid or
security of such arrears is furnished to the satisfaction of the Registrar.

(5)
It shall be competent for the Registrar or a person authorised by him to
direct conditional attachment of the property of the mortgagor until the
arrears due to the co-operative housing society or the apex, as the case may
be, together with interest and any incidental charges incurred in the
recovery of such arrears are paid or security for payment of such arrears is
furnished to the satisfaction of the Registrar or the person authorised by
him.

85.
(1) Where a co-operative housing
society has raised loan from the apex or any other approved housing finance
institution against the security of land and building and the possession of
such building has been handed over to the loanee members, if any member
fails to repay the loan installment for a continuous period of sixty days
after the installment has become due, the co-operative housing society shall
issue a notice for repayment of the defaulted amount along with the balance
outstanding as recall of loan.

(2)
If the member fails to repay the recalled amount of loan together with the
interest, if any, within thirty days, the committee shall refer the case to
the Registrar who may make further enquiries as deem fit and issue a notice
to the defaulter member providing him an opportunity to pay the defaulted
amount within such time as he may deem fit subject to a maximum of ninety
days and pass orders to that effect and in case the defaulter member still
persists in default, the Registrar may issue a recovery certificate for the
recovery of defaulted amount along with interest and cost, if any, as
arrears of land revenue :

Provided
that the apex or the financing institution may directly approach the
Registrar for initiating proceedings against the defaulter member as above,
in case the committee fails to initiate action against the defaulter member
within thirty days.

86.
(1) Notwithstanding anything contained
in this Act and the rules framed thereunder, the committee of a co-operative
housing society may, by a resolution, expel a member on any one or more of
the following grounds, namely -

(a)
if he has been a persistent defaulter in respect of any dues of the
co-operative housing society; or

(b)
if he has willfully deceived the co-operative housing society by making any
false statement or submitting any false document to obtain the membership of
such co-operative society; or

(c)
if he has brought disrepute to the co-operative society or has done any
other act detrimental to the interest and proper working of the co-operative
society :

Provided
that no such resolution shall be passed unless the member concerned has been
given an opportunity of being heard after service of three registered
notices confronting the member with the grounds for his proposed expulsion :

Provided
further that no member shall be expelled unless a resolution to that effect
is passed by not less than three-fourths of the members of the committee
present and entitled to vote at the meeting and no resolution for expulsion
shall be valid unless approved by the Registrar.

(2)
After the resolution for expulsion is passed as above by the committee, the
resolution shall be referred to the Registrar for approval within a period
of thirty days.

(3)
On the receipt of the resolution for expulsion, the Registrar shall take
cognizance of such resolution within thirty days and pass a final order
either approving the expulsion or rejecting the proposal for expulsion
within a period of one hundred and eighty days and if the matter is not
decided by the Registrar within the aforesaid period, the expulsion of such
a member shall be deemed to have been approved :

Provided
that the Registrar, before approving the resolution, shall hear the parties
concerned in the manner prescribed and shall have power to summon and
enforce attendance of witnesses including the parties interested or any of
them and compel them to give evidence on oath, affirmation or affidavit and
to compel production of documents by the same means and as far as possible
in the same manner as provided in the case of a civil court under the Code
of Civil Procedure, 1908 (5 of 1908) and the order under this section so
passed by the Registrar, shall be final with a right for appeal before the
Tribunal.

(4)
Any party aggrieved by the order of the Registrar or deemed approval of
expulsion, as the case may be, under sub-section (3) may, within sixty days
from the date of such order, appeal to the Tribunal.

87.
Subject to the provision of this Act,
in the case of a cooperative housing society, a person shall also cease to
be a member of a cooperative society -

(a)
on disposing of the property through instrument of power of attorney and
agreement for sale subject to the interest of the mortgagee if there is any
loan on the property; or

(b)
if he -

(i)
before becoming a member of a cooperative housing society, already owns,
either in his own name or in the name of his spouse or any of his dependent
children;

(ii)
after becoming a member in a cooperative housing society, during the
currency of such membership, till allotment of any plot or flat to him, as
the case may be, acquires either in his own name or in the name of his
spouse or any of his dependent children; a residential property exceeding
66.72 sq. meters in area, in any of the approved or unapproved colonies or
other localities in Delhi either on lease-hold basis or free-hold basis or
on power of attorney or on agreement for sale basis :

Provided
that no person having residential
property under this section in the village abadi area in
Delhi
shall be disqualified :

Provided
further that no such disqualification shall be applicable in the case of a
person who has acquired property on power of attorney or through agreement
for sale and on conversion of the property from leasehold to freehold on
execution of conveyance deed for it, if such person applies for the
membership of the cooperative housing society concerned :

Provided
also that no member shall earn disqualification in clause (b) above, if the
residential property devolves on him by way of inheritance.

89.
(1) Every co-operative housing society shall frame regulations from time to
time with the approval of the general body meeting of the co-operative
housing society for maintenance of essential services including mandatory
green area in the co-operative housing society which shall contain details
of services to be provided and service charges to be recovered for such
services from the members and residents of its housing complex.

(2)
If any member or resident fails to make payment of such services for thirty
days after raising of the demand by the committee such member or resident,
as the case may be, will be asked to clear default within thirty days and in
case of default by the member, the committee may institute proceedings for
recovery of the dues in accordance with the provisions of this Act as
arrears of land revenue.

91.
Any person who has acquired property
on occupancy right in a co-operative housing society through the instrument
of power of attorney or agreement for sale shall have the opportunity to
become member of the concerned co-operative housing society where the
property exists by getting the property converted from leasehold to freehold
and on paying the transfer fee to the concerned co-operative housing society
along with dues, including the dues of the apex or financial institution, if
any :

Provided
that a power of attorney holder or purchaser of property through agreement
of sale and purchase in a co-operative housing society shall get the said
property converted from lease hold to free hold within a period of three
hundred and sixty days at the commencement of this Act and all subsequent
sales and purchases of such property after the commencement of this Act, the
property shall be converted from lease hold to free hold within three
hundred and sixty days, failure to do so shall be deemed to be an offence
under section 118 :

Provided
further that any such person can have access to the paid services provided
by the committee, namely the use of community hall, swimming pool or any
other common facilities available to the members or the use of common
parking spaces provided by the co-operative housing society only in the
event of his becoming member as aforesaid and the transfer fee for becoming
member shall be ten thousand rupees or as may be revised by the Registrar
from time to time.

92.
(1) On allotment of land to, and possession thereof by the co-operative
housing society, the committee shall appoint the architect and the
contractor with a provision that construction shall be completed as per time
limit fixed for completion of construction of the housing project of the
society in the sanction letter conveying approval of layout and building
plans by the sanctioning authority under the applicable building bye-laws or
within five years from the date of sanction of layout and building plans by
the competent civic authority, whichever is earlier, with the prior approval
of the general body:

Provided
that if due to unforeseen
circumstances, the aforesaid time limit cannot be adhered, the committee
shall approach the Government for further extension of time to complete the
project with the approval of its general body at least one hundred and
eighty days in advance and failure to adhere to the above time limit by the
committee shall be an offence.

(2)
After the appointment of the architect and the contractor the committee
shall finalise the likely cost, the time for the execution of the project,
the size, category and design of the flats with a five years defect
liability provision to attend defects in the construction by the concerned
contractor and all incidental matters thereto and get the approval of the
general body.

(3)
During the construction period, there shall be, at least, two special
general body meetings every year besides one annual general body meeting to
give progress report to the members.

(4)
No escalation in cost of the project, and the time fixed for the execution
thereof shall be extended by the committee without the prior approval of the
general body.

(5)
There will not be unilateral change of category or size of flat by the
committee without giving an opportunity to the concerned member of hearing
after communicating to him the grounds for change of category or size and
preference shall be given to the existing members in case of any vacancy
falling in the higher category.

(6)
All proposals as above, shall be approved by the general body in a meeting
by a majority of not less then two-thirds of the total membership of the
co-operative housing society.

(7)
It shall be the responsibility of the committee to ensure quality and
structure stability of the project and the availability of all facilities
including electricity, water, lifts, sewage, roads, mandatory green and
landscape, etc. before allotment.

(8)
The Registrar may issue directions and guidelines from time to time in
public interest for timely execution of the project.

93.
(1) The management of co-operative
housing complex shall be entrusted to the committee which will ensure
cleanliness, security, upkeep of common areas, services, landscape and
exterior of the building, prepare a budget for annual maintenance charges
which shall be got approved annually from the general body and it shall be
the responsibility of the member or occupant, as the case may be, to make
payment of maintenance charges to the committee.

(2)
If any defects occur in the flats and any repairs are required after
allotment, the committee shall have the right to get such defects rectified
or repairs carried out at the cost of the member or members concerned in
whose flats such defects need rectification or need repairs and if the
member or members concerned fail to make payment to the committee for
getting such repairs carried out upon being given proper notice, the
committee shall recover the above dues as arrears of land revenue by making
a reference to appropriate authority under section 111.

(3)
A member who wants to carry out internal repairs may apply to the committee
for necessary permission and if no structural changes are involved and the
proposed repairs are not likely to cause any defect in the flat of any other
member, the committee may grant permission to the concerned member to carry
out the internal repairs.

(4)
In case any defect occurs in the flat of any other member or members on
account of internal repairs in his flat by a member, the member or members
concerned shall be compensated by the member who has carried out repairs and
in case the member concerned does not pay the necessary compensation after
service of notice, the committee shall recover the same as arrears of land
revenue by making reference to appropriate authority under section 111 and
after such recovery to make payment to the affected member.

(5)
All the flats besides other assets of the co-operative housing society shall
have to be insured for all risks including earthquake annually on
reinstatement basis against the value of the inflation for the same type of
buildings.

94.
In case of a house building
co-operative society where all plots have been allotted to its members and
basic civic services have been transferred to the local civic body, the
Registrar shall, after giving sixty days' notice to the committee, initiate
winding up proceedings and such co-operative house building society shall be
wound up :

Provided
that in the case of a co-operative house building society where land has
been allotted on perpetual lease, before passing winding up orders the prior
consent of the lessor shall be obtained.

95.
(1) A co-operative society may by special resolution, authorise its own
dissolution, a notice of the general body meeting called for the purpose
shall also be sent by registered post with an invitation to attend, to the
Registrar, to creditors, if any, to any co-operative society to which the
co-operative society is affiliated, and to any co-operative society with
which a partnership contract has been entered into.

(2)
The invitee under sub-section (1) shall have the right only to make a
presentation to the general body, if he wishes to do so, on the issue of the
proposed dissolution.

(3)
Within fifteen days of such authorisation for dissolution, the co-operative
society shall send to the Registrar a copy by registered post of the
authorisation to dissolve the co-operative society.

(4)
The authorisation approved under sub-section (1) shall set out -

(a)
the assets and liabilities of the co-operative society;

(b)
the claims of creditors;

(c)
the number of members;

(d)
the nature and extent of the members interest in the co-operative society;
and

(e)
the name and address of the liquidator appointed by the co-operative
society.

(5)
When the Registrar receives the special resolution passed under sub-section
(1) -

(a)
where he is satisfied that the co-operative society has no assets or
liabilities, he shall dissolve the co-operative society, delete its name
from the register of co-operative societies and issue a certificate of
dissolution of such co-operative society; or

(b)
he shall, within thirty days of the date of receipt of such resolution,
cause at the expense of the co-operative society a notice of the special
resolution to be published in the official Gazette and in a newspaper in
Hindi and English.

(6)
In the case of dissolution, the Registrar may require, till the certificate
of dissolution is issued by him, from the liquidator appointed by the
co-operative society or from any other person who is required to furnish
information, a periodical return showing -

96.
(1) Where the Registrar has reason to believe that a co-operative society -

(a)
has not commenced business within seven hundred seventy five days after the
date shown on its certificate of registration; or

(b)
has not carried on business for two consecutive co-operative years; he shall
send to the co-operative society a letter by registered post, inquiring
whether the co-operative society is carrying on business.

(2)
Where the Registrar -

(i)
does not, within thirty days of the date of sending a letter under
sub-section (1) , receive a reply to the letter, he shall, within fifteen
days after the expiry of said thirty days, send to the co-operative society
a letter stating that -

(a)
a letter was sent to the co-operative society under sub-section (1);

(b)
no reply to the letter has been received by him within thirty days from the
date of sending it.

(ii)
receives a reply from the co-operative society that it is not carrying on
business; or

(iii)
does not , within thirty days from the date he sent a letter under
sub-section (i) receive a reply to that letter; he shall publish the notice
in the newspaper and send to the co-operative society a notice that, at the
expiry of thirty days from the date of the notice, the co-operative society
shall, unless cause is shown to the contrary, be dissolved and have its name
deleted from the register of co-operative societies.

(3)
On the expiry of thirty days from the date of issue of the letter under
sub-section (2), the Registrar shall, unless cause to the contrary is
previously shown by the co-operative society -

(a)
where he is satisfied that the co-operative society has no assets or
liabilities, dissolve the co-operative society, delete its name from the
register of co-operative societies and issue a certificate of dissolution of
such co-operative society; or

(b)
appoint a liquidator under section 99 to wind up the affairs of the
co-operative society.

(4)
Where a co-operative society fails to file returns and furnish information,
as required by section 32, the Registrar shall send a requisition under
sub-section (1) of section 33 to the committee to call a special general
body meeting for the purpose of considering the annual returns to be filed
with, and the information to be furnished to the Registrar.

(5)
Where the committee fails to call a special general meeting within the
period specified in sub-section (1) of section 33 the Registrar may at the
cost of the co-operative society call the special general body meeting
notwithstanding anything contained in this Act -

(a)
to review the affairs of the co-operative society; and

(b)
to ascertain whether the general body desires to continue the co-operative
society.

(6)
Where -

(a)
a quorum of members is not present at the special general body meeting
called under sub-section (4) or sub-section (5); or

(b)
the general body meeting fails to pass a resolution to the effect that -

(i)
the co-operative society is to carry on business;

(ii)
the committee shall present, within sixty days from the date of special
general body meeting to the general body the annual returns to be filed
with, and the information to be furnished to, the Registrar; and

(iii)
the co-operative society shall file the returns with, and furnish the
information to, the Registrar within ninety days from the date of special
general body meeting; or

(c)
if the co-operative society fails to file the returns with, and furnish the
information to, the Registrar within ninety days from the date of the
special general body meeting; the Registrar shall -

(i)
if he is satisfied that the co-operative society has no assets or
liabilities, dissolve the co-operative society, delete its name from the
register of co-operative societies and issue a certificate of dissolution of
such co-operative society; or

(ii)
appoint a liquidator under section 99 to wind up the affairs of the
co-operative society.

98.
Where a co-operative bank being an
insured bank within the meaning of the Deposit Insurance and Credit
Guarantee Corporation Act, 1961 (47 of 1961) is wound up, or taken into
liquidation, and the Deposit Insurance Corporation has become liable to the
depositors of the insured bank under sub-section (1) of section 16 of that
Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator
or such other person in the circumstances to the extent and in the manner
provided in section 21 of the Deposit Insurance and Credit Guarantee
Corporation Act, 1961 (47 of 1961).

99.
(1) Where the Registrar has made an
order under section 96 for the winding up of a co-operative society, the
Registrar may appoint a liquidator for the purpose and fix his remuneration.

(2)
Where a co-operative society is to be dissolved and no liquidator is
appointed by the general body meeting, the Registrar shall appoint any
person as a liquidator to wind up the affairs of the co-operative society.

(i)
in the case of a liquidator not appointed by the Registrar, to the
Registrar; and

(ii)
to each claimant and creditor known to the liquidator;

(b)
immediately publish notice of his appointment in the official Gazette and in
a newspaper in Hindi and English and take reasonable steps to give notice of
the liquidation in every jurisdiction where the co-operative society carries
on business;

(c)
include in the notice mentioned in clauses (a) and (b) a provision requiring
any person -

(i)
indebted to the co-operative society to render an account and pay to the
liquidator at the time and place specified in the notice any amount owing;

(ii)
possessing property of the co-operative society to deliver it to the
liquidator at the time and place specified in the notice; and

(iii)
having a claim against the co-operative society, whether liquidated,
unliquidated, future or contingent, to present particulars of the claim in
writing to the liquidator at the time and place specified in the notice
within the period specified in such notice which shall not exceed sixty days
from the date of first publication of the notice.

(d)
take into his custody and under his control all the property and actionable
claims to which the co-operative society is or appears to be entitled and
shall take such steps as he may deem necessary or expedient to prevent loss
or deterioration of or damage to such property, effects and claims;

(e)
open and maintain a trust account for the moneys of the co-operative
society;

(f)
keep accounts of the moneys of the co-operative society received and paid
out by him;

(g)
maintain separate lists of the members, creditors and other persons having
claims against the co-operative society;

(h)
where at any time he determines that the co-operative society is unable to
pay or adequately provide for the discharge of its obligations, apply to the
Registrar or general body, as the case may be, for directions; and

(i)
deliver to the Registrar or general body, as the case may be, periodically
as the Registrar or general body may require, financial statements of the
co-operative society in such form the liquidator considers proper or that
the Registrar or general body may require.

101.
(1) The whole of the assets of a co-operative society in respect of which an
order for winding up has been made shall vest in the liquidator appointed
under section 99 from the date the order takes effect.

(2)
The liquidator may -

(a)
retain lawyers, accountants, engineers, appraisers and other professional
advisors;

(b)
institute and defend suits and other legal proceedings on behalf of the
co-operative society by the name of his office;

(c)
carry on the business of the co-operative society so far as may be necessary
for the beneficial winding up of the same;

(d)
sell by public auction or private sale any property of the co-operative
society;

(e)
do all acts and execute any documents in the name and on behalf of the
co-operative society;

(f)
borrow money on the security of the property of the co-operative society;

(g)
settle or compromise any claims by or against the co-operative society; and

(h)
do all other things that he considers necessary for the liquidation of the
co-operative society and distribution of its property.

(3)
Where a liquidator has reasons to believe that any person has in his
possession or under his control, or has concealed, withheld or
misappropriated any property of the co-operative society, he may apply to
the Metropolitan Magistrate for an order requiring that person to appear
before the court at the time and place designated in the order and to be
examined.

(4)
Where the examination under sub-section (3) discloses that a person has
concealed, withheld or misappropriated property of the co-operative society
or has in possession or under his control the property of the co-operative
society, the Metropolitan Magistrate may order that person to restore the
property or pay compensation to the liquidator on behalf of the co-operative
society.

(5)
No liquidator shall purchase, directly or indirectly, any part of the
stock-in-trade, debts or assets of the co-operative society.

(6)
Where an order of winding up of co-operative society is set aside in appeal,
the property, effects and actionable claims of the co-operative society
shall revest in the co-operative society.

102.
After all the liabilities including
the paid up share capital of a wound up co-operative society have been met,
the surplus assets shall not be divided among its members but they shall be
applied to any object described in the rules and when no object is so
described, to any object of public utility determined by the general body
meeting.

103.
(1) A liquidator shall pay the costs
of liquidation out of the property of the co-operative society and shall pay
or make adequate provision for all claims against the co-operative society.

(2)
Subject to the provisions of section 102 after paying or making adequate
provision for all claims against the co-operative society, the liquidator
shall apply to the Registrar for approval of his final accounts and for
permission to distribute in cash or in kind, the remaining property of the
co-operative society in accordance with the rules.

(3)
Where the Registrar approves the final accounts rendered by a liquidator
under sub-section (2), he shall -

(i)
issue directions with respect to the custody or disposal of the documents
and records of the co-operative society; and

(ii)
discharge the liquidator.

(4)
Where the Registrar discharges a liquidator under sub-section (3) the
Registrar shall dissolve the co-operative society, issue a certificate of
dissolution and delete its name from the register of co-operative societies.

(5)
The co-operative society ceases to exist on the date shown in the
certificate of dissolution, which shall not be later than seven hundred and
thirty days after the appointment of the liquidator.

(6)
An order passed under sub-section (1) shall be communicated by registered
post to the president of the co-operative society and to the financing bank
or federal co-operative society to which co-operative society if indebted,
if any, of which the co-operative society was a member.

104.
Notwithstanding anything
contained in Chapter VIII or any other law for the time being in force, but
without prejudice to any other mode of recovery provided in this Act, the
Registrar or any person subordinate to him empowered by the Registrar in
this behalf may on the application of a co-operative society, make an order
directing the payment of any debt or outstanding demand due to the
co-operative society by any member or past or deceased member, by sale of
the property or any interest therein, which is subject to a charge under
section 45 :

Provided
that no order shall be made under this section unless the member, past
member or the nominee, heir or legal representative of the deceased member,
has been served with a notice in the manner prescribed.

105.
Every decision award or order duly
passed by the Registrar or the arbitration council or the Tribunal, or the
Government under section 31, section 32, section 33, section 66, section 71,
section 104, section 110, section 112, section 114, section 115, section 116
or any other provisions of this Act shall, if not carried out -

(a)
where the decision, award or order provides for the recovery of money, be
executed according to the law for the time being in force relating to the
recovery of land revenue :

Provided
that an application for the recovery of any sum in the manner aforesaid
shall be made to the Collector and shall be accompanied by a certificate
signed by the Registrar or by any person subordinate to him and empowered by
the Registrar in this behalf;

(b)
in any other case be executed by the Registrar or any person subordinate to
him and empowered by the Registrar in this behalf, in the same manner as is
provided in the case of a civil court by the Code of Civil Procedure, 1908
(5 of 1908).

107.
Where the Registrar is satisfied that
a party to any reference made to him under section 70 with intent to defeat
or delay the execution of any decision that may be passed thereon is about
to -

(a)
dispose of the whole or any part of the property; or

(b)
remove the whole or any part of the property from the local limits of the
jurisdiction of the Registrar;

the
Registrar may, unless adequate security is furnished, direct the conditional
attachment of the said property or such part thereof as he thinks necessary
and such attachment shall be executed as if by a civil court having
jurisdiction in the same way as an attachment order passed by itself and
shall have the same effect as such an order:

Provided
that the powers of the Registrar under this section shall not be delegated
to any officer below such rank as may be prescribed.

108.
(1) Notwithstanding anything contained
in this Act or in any other law for the time being in force and without
prejudice to any mode of recovery which is being taken or may be taken, the
Registrar may, on application made by a co-operative society including
federal co-operative society or financial institution for recovery of
arrears of any sums advanced to any of its members and on its furnishing a
statement of accounts in respect of arrears and after making such inquiry as
he deems fit, issue a certificate for recovery of the amount stated therein
to be due as arrears.

(2)
Where the Registrar is satisfied that a co-operative society has failed to
take action under sub-section (1) in respect of any amount due as arrears,
he may on his own motion, and after making such enquiry as he deems fit,
issue a certificate for the recovery of the amount stated therein to be due
as arrears and such certificate shall be deemed to have been issued on an
application made by co-operative society or financial institution concerned.

(3)
A certificate issued by the Registrar under sub-section (1) or sub-section
(2) shall be final and conclusive proof of the arrears stated to be due
therein and the certificate shall be executed in the manner specified in
section 111.

109.
The Registrar or any person empowered
by him in this behalf shall be deemed, when exercising any powers under this
Act for the recovery of any amount by the attachment and sale or by sale
without attachment of any property, or when passing any orders on any
application made to him for such recovery or for taking a step in aid of
such recovery, to be civil court for the purposes of article 136 of the
Schedule to the Limitation Act, 1963 (36 of 1963).

110.
(1) All sums due from a co-operative
society, or from an officer or member or past member of a co-operative
society as such, to Government, including any costs awarded to Government
under any provision of this Act, may on a certificate issued by the
Registrar in this behalf, be recovered in the same manner as arrears of land
revenue.

(2)
Sums due from a co-operative society to Government and recoverable under
sub-section (1), may be recovered, firstly, from the property of the
co-operative society, secondly, in the case of the co-operative society, the
liability of the members of which is limited from the members, past members
or the estates of deceased members, subject to the limit of their liability,
and thirdly, in the case of other co-operative societies, from the members,
past members or the estates of the deceased members :

Provided
that the liability of past members and the estate of deceased members shall
in all cases be subject to the provisions of section 29.

111.
(1) For the purpose of effecting
recovery of amount due and recoverable under the provisions of this Act and
the rules made thereunder, as arrears of land revenue -

(i)
the Registrar appointed under section 3 shall have and exercise all powers
and perform all the duties of the Collector under the Delhi Land Reforms
Act, 1954; (Delhi Act 8 of 1954) read with the Delhi Land Revenue Act, 1954
(Delhi Act 12 of 1954);

(ii)
the Joint Registrars appointed to assist the Registrar under section 3 of
this Act shall have and exercise all powers and perform all the duties of
the Additional Collector;

(iii)
the Deputy Registrars, Assistant Registrars and the Recovery Officer
appointed under section 3 of this Act shall have and exercise all powers and
perform all the duties of the Assistant Collector Grade I; and

(iv)
Inspectors Grade II assigned the duties of recovery shall have and exercise
all the powers and perform all the duties of Assistant Collector Grade II.

(2)
Every notice issued or order passed in exercise of the powers conferred by
sub-section (1) shall, for the purpose of sections 31, 33, 44, 51, 65, 66,
69, 77, 83, 84, 85, 89, 93, 105, 106, 108, 110, 111, 116 and 122 be deemed
to be a notice or an order passed under this Act.

112.
(1) Subject to the provisions of section 113, an appeal shall lie under this
section against-

(a)
an order of the Registrar made under sub-section (2) of section 9 refusing
to register a co-operative society;

(b)
an order of the Registrar made under sub-section (4) of section 12 refusing
to register an amendment of the bye-laws of a co-operative society;

(c)
an order of the Registrar made under sub-section (1) of section 17;

(d)
disputes relating to election under section 35;

(e)
an order of the Registrar removing the committee of a co-operative society
made under section 37;

(f)
a decision of a co-operative society expelling any of its member under
section 40;

(g)
an order made by the Registrar under section 64 apportioning the cost of an
inspection held under section 61 or an inquiry made under section 62;

(h)
an order of surcharge under sub-section (2) of section 66;

(i)
any decision made under section 70;

(j)
any deemed admission of case under sub-section (3) of section 70;

(k)
any decision or award made under section 71;

(l)
application for implementation of award for vacating possession of flat or
plot under sub-section (7) of section 83;

(m)
expulsion from the membership under sub-section (3) of section 86;

(n)
an order made by the co-operative society or the Registrar under section 95
or section 96 or section 97 directing the winding up of a co-operative
society;

(o)
any order made by the liquidator of a co-operative society in exercise of
the powers conferred on him by section 101;

(p)
any order made under section 107; and

(q)
a decision of a co-operative society refusing to admit any person as a
member of the co-operative society who is otherwise duly qualified for
membership under the bye-laws of the co-operative society.

(2)
An appeal against any decision or order under sub-section (1) shall be made
within sixty days from the date of decision or order -

(a)
if the decision or order falls under clauses (d), (f) (g), (h), (i), (j),
(k) and (m) of sub-section (1), to the Tribunal;

(b)
if the decision or order falls under clause (e), to the Government;

(c)
if decision or order falls under clause (l), to the court of Metropolitan
Magistrate; and

(d)
in any other case, to the Government or the Registrar according as the
decision or order was made by the Registrar or any other person.

(3)
No appeal shall lie under this section from any decision or order by the
Registrar in appeal.

114.
(1) The Government shall by notification published in the official Gazette,
constitute a Tribunal to be called the Delhi Co-operative Tribunal to
exercise the powers and perform the functions conferred by or under this Act
upon such Tribunal.

(2)
The Tribunal shall consist of a Chairman and not more than two other members
possessing such qualifications as may be prescribed, and shall be appointed
by the Government by notification in the official Gazette for such term as
may be prescribed.

(3)
Any vacancy in the membership of the Tribunal shall be filled by the
Government.

(4)
Subject to the previous approval of the Government, the Tribunal shall frame
regulations, consistent with the provisions of this Act and the rules made
thereunder for regulating its procedure and the disposal of its business.

(5)
The regulations made under sub-section (4) shall be published by the
Government in the official Gazette.

(6)
The Tribunal may call for and examine the record of any proceedings, in
which an appeal lies to it, for the purpose of satisfying itself as to the
legality or propriety of any decision or order passed and if in any case it
shall appear to the Tribunal that any such decision or order should be
modified, annulled or reversed, the Tribunal may pass such order thereon as
it may deem fit.

(7)
An order passed in appeal under section 112 or in revision under sub-section
(6) of this section or in review under section 115 by the Tribunal shall be
final and conclusive, and shall not be called in question in any civil or
revenue court.

Explanation.
- The Tribunal hearing an appeal under this Act shall exercise all the
powers conferred upon an appellate court by section 97 of, and Order XLI of
the First Schedule to, the Code of Civil Procedure, 1908 (5 of 1908).

115.
(1) The Government or the Tribunal or
the Registrar on the application of any party may review their own order in
any case, and pass in reference thereto such order as they think just :

Provided
that no such application made by the party shall be entertained unless the
Government or the Tribunal or the Registrar, as the case may be, is
satisfied that there has been the discovery of new important matter of
evidence, which after the exercise of due diligence was not within the
knowledge of the applicant or could not be produced by him at the time when
order was made or that there has been some mistake or error apparent on the
face of the record, or for any other sufficient reasons :

Provided
further that no such order shall be varied or revised unless notice has been
given to the parties interested to appear and being heard in support of such
order.

(2)
An application for review under sub-section (1) by any party shall be made
within thirty days from the date of communication of the order of the
Goverment or the Tribunal or the Registrar.

116.
(1) Goverment may of its own motion or on application made to it, call for
and examine the record of the Registrar, in respect of any proceeding not
being a proceeding in respect of which an appeal to the Tribunal is provided
by section 114 to satisfy himself as to the regularity of such proceeding or
the correctness, legality or propriety of any decision passed or order made
therein and if, in any case, it appears to the Goverment that any such
decision or order should be modified, annulled, reversed or remitted for
reconsideration, he may pass orders accordingly :

Provided
that every application to the Goverment for the exercise of the powers under
this section shall be preferred within ninety days from the date on which
the proceedings, decision or order to which the application relates was
communicated to the applicant.

(2)
No order prejudicial to any person shall be passed under sub-section (1)
unless such person has been given an opportunity of making his
representation.

(3)
Government may suspend the decision or order pending the exercise of its
power under sub-section (1) in respect thereof.

(4)
Government may award costs in proceedings under this section to be paid
either out of the funds of the co-operative society or by such party to the
application for the revision as the Government may deem fit which may be
recovered as arrears of land revenue.

117.
Where an appeal is made under section
112 or where the Tribunal or the Government calls for the record of a case
under section 113 or section 115, the appellate authority or the Tribunal or
the Government, as the case may be, may in order to prevent the ends of
justice being defeated, make such interlocutory order, including an order of
stay, pending the decision of the appeal or revision as such authority or
the Tribunal or the Government may deem fit.

(a)
the committee, an officer, employee or any member of the co-operative
society wilfully makes a false return or furnishes false information
relating to the affairs of the co-operative society under this Act;

(b)
the committee, its officers or employees falsify or tamper with the records
of the co-operative society;

(c)
the committee fails to hold annual general body meeting under sub-section
(1) of section 31 or fails to send returns to the Registrar after the
meeting under section 32;

(d)
committee fails to act on a requisition for holding special general body
meeting under sub-section (2) of section 33;

(e)
the outgoing committee does not hand over the records to the newly elected
committee or administrator or the liquidator under sub-section (2) of
section 38;

(f)
the committee or any of its officials fail to comply with the directions
given under section 42 or section 138;

(g)
any person acts in contravention of section 44 or section 45 or sub-section
(2) of section 66 or section 67 or section 68 or sub-section (8) of section
92;

(h)
if any allotment of plot or flat is made in contravention of provisions of
sub-section (1) of section 77;

(i)
an officer, or an employee of the co-operative society including the paid
secretary, dishonesty or fraudulently mis-appropriates or otherwise converts
for his own use or intentionally causes loss to the property of the
co-operative society entrusted to him or under his control as such officer
or employee or allows any other person so to do;

(j)
an officer or an employee of the co-operative society is or proved to have
been in possession of any pro-perty of the co-operative society reasonably
suspected to have been stolen or unlawfully obtained;

(k)
any officer or employee abets any offence punishable under this Act whether
or not that offence is committed in consequence of that abetment;

(l)
if the committee fails to initiate action against the defaulter member for
recovery of dues of the apex or any other financing institution after the
finality of the award or after recovery of such dues, fails to pay the
recovered amount to the apex or the financial institution;

(m)
on failure to convert the property to freehold by a power of attorney holder
or purchaser of property on agreement to sell within a period of three
hundred and sixty days the under provisions of section 91;

(n)
on failure of the committee of a co-operative housing society to complete
construction of its housing project within time limit fixed under
sub-section (1) of section 92.

(2)
An offence under clause (a) of sub-section (1) shall be punishable with fine
which may extend to fifty thousand rupees.

(3)
An offence under any of the clauses (b) to (n) of sub-section (1) shall be
punishable with imprisonment for a term which may extend to seven years and
with fine which may extend to fifty thousand rupees or the both.

(4)
On conviction, a member of the co-operative society shall be debarred from
contesting election of a committee for a period of six years.

(5)
The period of limitation for taking cognizance of the offence under this
section shall be three years from the date of the offence.

119.
(1) No person other than a
co-operative society shall trade or carry on business under any name or
title of which the word `co-operative' or its equivalent in any Indian
language forms part without the sanction of the Government :

Provided
that nothing in this sub-section shall apply to the use, by any person or
his successor in interest, of any name or title under which he traded or
carried on business at the date on which the Co-operative Societies Act,
1912, (2 of 1912 ) come into operation.

(2)
Whoever contravenes the provisions of sub- section (1) shall be punishable
with fine which may extend to two hundred rupees and in the case of a
continuing offence with further fine of five hundred rupees for each day
during which the offence is continued after conviction therefor.

120.
Any co-operative society or any officer or member thereof or any other
person contravening the provisions of this Act for which no punishment is
expressly provided herein shall be punishable with a fine which may extend
to five thousand rupees.

121.
(1) No court inferior to that of a Metropolitan Magistrate shall try any
offence under this Act.

(2)
No prosecution shall be instituted under this Act without the previous
sanction of the Registrar and such sanction shall not be given unless the
person concerned has been provided a reasonable opportunity to represent his
case.

(3)
Every offence under this Act shall, for the purposes of the Code of Criminal
Procedure, 1973 (2 of 1974), be deemed to be a cognizable offence.

122.
(1) In the trial of offences by the
Metropolitan Magistrate, it shall be presumed until the contrary is proved
that any officer or employee of a co-operative society -

(a)
who draws the amounts from the financing institution and fails to properly
disburse or account for it, has misused or misappropriated the amounts;

(b)
who is responsible for the custody of books and properties or who is in
actual possession thereof, fails to produce the same on requisition by the
Registrar or any person authorised by him, has wilfully withheld the same;

(c)
who makes any false entries or manipulates or alters the account books of
the co-operative society, has wilfully committed the said act in order to
cause loss or damage to the co-operative society;

(d)
who misuses the properties of the co-operative society in contravention of
the provisions of this Act and the rules made thereunder or the bye-laws of
the co-operative society has done so, for his personal benefit;

(e)
who executes any documents or enters into an agreement for sale or purchase
of the land, plots, flats, etc., in contravention of the provisions of the
registered bye-laws of the co-operative society, has done so for his
personal benefit and in order to cause loss to the members of the
co-operative society.

(2)
Any officer or employee of a co-operative society who issues any receipt
shall be deemed to have issued the same in the name of the co-operative
society and shall be responsible to account for the same.

(3)
Notwithstanding the criminal liability, the officer or employee of a
co-operative society shall be responsible to make good the loss caused to
the co-operative society by committing such offences and the same shall be
recovered as arrears of land revenue by the Registrar or the person
authorised by him from the person responsible for causing such loss or his
legal heirs or any person who has acquired the properties from such person
or with the assistance of such person.

123.
Where any member, officer or employee
of a co-operative society has made a statement during the audit under
section 60, or inspection under section 61, or inquiry under section 62, or
inspection of debtor institution under section 63, or proceedings under
section 66 and the statement is recorded by the Registrar or the person
authorised by the Registrar in exercise of their powers conferred on them
under this Act, the court shall presume that the statement was so recorded
by the Registrar or the person authorised by him as a statement within the
meaning of the Indian Evidence Act, 1872 (Act 1 of 1872).

124.
Every co-operative society shall have
an address registered in the manner prescribed to which all notices and
communications may be sent and shall send to the Registrar notice of every
change thereof within thirty days of such change.

125.
Every co-operative society shall keep
a copy of this Act, the rule and its bye-laws and also a list of its
members, open to inspection free of charge at all reasonable times at the
registered address of the co-operative society.

126.
Notwithstanding anything contained in
this Act, the Government may, by general or special order and subject to
such conditions, if any, as it may impose, exempt any co-operative society
or class of co-operative societies from any of the requirements of this Act
as to registration.

127.
The Government may, by general or
special order, to be published in the official Gazette, exempt any
co-operative society or class of co-operative societies from any of the
provisions of this Act, or may direct that such provisions shall apply to
such co-operative society or class of co-operative societies with such
modifications as may be specified in the order.

128.
The Registrar or any person authorised
by him to recover any amount or to execute any orders or decisions taken
under any provisions of this Act and every officer and employee of the
co-operative society shall be deemed to be a public servant within the
meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860)

129.
No suit shall be instituted against a
co-operative society or any of its officer in respect of any act touching
the business of the co-operative society until the expiration of ninety days
next after notice in writing has been delivered to the Registrar or left at
his office, stating the cause of action, the name, description and place of
residence of the plaintiff and the relief which he claims, and the plaint
shall contain a statement that such notice has been so delivered or left.

131.
(1) Every existing co-operative
society which had been registered under the Co-operative Credit Societies
Act, 1904 or under the Co-operative Societies Act, 1912, or under the Bombay
Co-operative Societies Act, 1925, as was in force in Delhi, or the Delhi
Co-operative Societies Act, 1972 shall be deemed to be registered under the
corresponding provisions of this Act and rules framed thereunder and
bye-laws thereof shall, so far as the same are not inconsistent with the
express provisions of this Act, continue in force until altered or
rescinded.

(2)
All appointments, rules and orders made, notifications and notices issued
and suits and other proceedings instituted under the said Acts shall, so far
as they are consistent with the provisions of this Act, be deemed to have
been respectively made, issued and instituted under this Act, save that an
order made cancelling registration of a co-operative society shall be
deemed, unless the co-operative society has already been finally liquidated,
as an order issued under section 95 or section 96 or section 97 for its
being wound up.

132.
(1) Save as provided in this Act, no
civil or revenue court shall have any jurisdiction in respect of -

(a)
the registration of a co-operative society or its bye-laws or of an
amendment of a bye-law;

(b)
the removal of the committee;

(c)
any dispute required under section 70 to be referred to the Registrar; and

(d)
any matter concerning the winding up and the dissolution of a co-operative
society.

(2)
While a co-operative society is being wound up, no suit or other legal
proceedings relating to the business of such co-operative society shall be
proceeded with or instituted against the liquidator as such or against the
co-operative society or any member thereof, except by leave of the Registrar
and subject to such terms as he may impose.

(3)
Save as provided in this Act, no order, decision or award made under this
Act, shall be questioned in any court on any ground whatsoever.

133.
(1) In exercising the functions
conferred on him by or under this Act, the Registrar, the arbitration
council or any other person deciding a dispute under section 70 and the
liquidator of a co-operative society or person entitled to audit, inspect or
hold an inquiry and the Tribunal shall have all the powers of a civil court,
while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in
respect of the following matters, namely -

(a)
Summoning and enforcing the attendance of any person and examining him on
oath;

(b)
requiring the discovery and production of any document;

(c)
proof of facts by affidavits; and

(d)
issuing commissions for examination of witness.

(2)
In the case of an affidavit, the Registrar or any officer appointed by him,
the arbitration council, the liquidator or the Tribunal, as the case may be,
may administer the oath to the deponent.

134.
No suit, prosecution or other legal
proceedings shall lie against the Registrar or any person subordinate to him
or acting on his authority in respect of anything in good faith done or
purporting to have been done under this Act.

135.
The Government shall as soon as may be
after the commencement of this Act, direct all co-operative societies or
class of co-operative societies to frame service rules for their employees
and get them approved from the committee within a period of three hundred
and sixty five days.

136.
The Government may, by notification in the official Gazette, direct that any
power exercisable by it under this Act, except the power to make rules, may
also be exercised by such officer as may be mentioned therein in such cases
and subject to such conditions, if any, as may be specified therein.

137.
(1) The Government may, by
notification published in the official Gazette, make rules for carrying out
all or any of the purposes of this Act and for any class of co-operative
societies.

(2)
In particular and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely -

(a)
prescription of viability norms for registration of a co-operative society;

(b)
the maximum number of shares or proportion of the capital of a co-operative
society which may be held by a member;

(c)
the form to be used and conditions to be complied with in making of
application for the registration of a co-operative society and the procedure
in the matter of such applications;

(d)
the procedure to be followed in making, altering and abrogating the bye-laws
and the conditions to be specified prior to such making, alteration and
abrogation and compulsory amendment of the bye-laws by the Registrar;

(e)
the procedure and conditions for change in the form and extent of liability
of a co-operative society;

(f)
procedure for amalgamation, transfer of assets and division of co-operative
society;

(g)
classifications of co-operative societies with reference to their objects,
area of operation, membership or any other matter by the Registrar;

(h)
conditions to be complied with by a person applying for admission or
admitted as member;

(i)
admission of any person as nominal, associate or joint member and the terms
and conditions and the procedure to be followed therefor;

(j)
right of membership to be acquired only on payment made towards membership
and interest to be acquired to exercise the right of membership and the
manner in which vote can be exercised;

(k)
restriction on transfer of shares or interest;

(l)
transfer of interest on death of a member, procedure and liability of past
member and estate of the deceased member;

(m)
the proportion of individual and co-operative society in the constitution of
the committee and the general body of co-operative society of which other
co-operative society is a member and the power exerciseable by such
committee or generla body;

(n)
the procedure for holding of annual general body meeting, time to be given
for finanalising the accounts at the close of the co-operative year,
consequence of failure of a committee to conduct the annual general body
meeting in time and action by the Registrar to conduct the same and recovery
of the expenses as arrears of land revenue from the defaulting persons;

(o)
details of the returns and their format to be filed relating to the
constitution, business and allied matters by a co-operative society within
thirty days of holding of the annual general body meeting;

(p)
the procedure for holding a special general body meeting and recovery of
expenses from delinquent officers of the committee;

(q)
the constitution of the committee of a co-operative society for its
management, procedure for nomination of members on the committees where the
Government has contributed equity share capital and the Government
guarantees have been given for loans or floating of bonds;

(r)
the procedure for holding of the elections and the steps to be initiated for
such election before the expiry of the term, appointment of an administrator
on failure to conduct elections and to conduct election within ninety days,
recovery of expenses from the delinquent officers of the committee in cases
of default;

(s)
prescribing reservation of seats for schedule castes, other backward classes
and woman on the committee, where share capital is subscribed by the
government and reservation of two seats for woman in all types of
co-operative societies;

(t)
rules and procedure for conducting the election of the committees;

(u)
the procedure for making a motion expressing lack of confidence in the
committee or any of its officer in the special general body meeting convened
for the purpose and setting up an ad-hoc committee to conduct fresh
elections within the period of ninety days;

(v)
the modalities to be complied with before supersession of the committee of a
co-operative society and constitution of the new committee by the
administrator before the expiry of his term;

(w)
procedure for authorisation to Sub-divisional Magistrate for securing
possession of records of a co-operative society;

(x)
the manner in which funds may be raised for running the business of a
co-operative society,

(y)
the procedure to be followed for cessation of membership in a cooperative
society.

(z)
procedure to be followed for expulsion of members other than members of
co-operative housing societies;

(za)
the procedure for certifying any entries in the books of a co-operative
society and charges to be levied for supply of copies thereof;

(zb)
the formation and maintenance of reserve fund and other funds, and the
objects to which such funds may be applied and allocation and distribution
of the net profit arrived thereafter;

(zc)
the amount and percentage of net profit to be contributed by a co-operative
society for Co-operative Education Fund and its utilisation;

(zd)
manner in which a co-operative society may invest or deposit its funds;

(ze)
the limit up to which a co-operative society can receive deposits and loans,
conditions for it;

(zf)
prohibitions and restrictions subject to which co-operative societies may
transact business with the persons who are not members;

(zg)
the manner of getting the audit conducted by an auditor on the panel of the
Registrar with in the prescribed time limit, action by the Registrar on
failure to comply with the time limit by a co-operative society and recovery
of expenses for getting the audit conducted as a arrears of land revenue
from the officers of the committee;

(zh)
the manner in which a copy of audit report to be sent to the Registrar and
rectification of defects by a co-operative society reported in the audit
report by an auditor;

(zi)
the manner in which inspection, inquiry and inspection of books of indebted
co-operative society is to be conducted, the security money to be deposited
by a creditor for such inspection and the follow up action to be taken on
the findings including the rectification thereof;

(zj)
the accounts and books to be kept by a co-operative society during the
course of its business and on failure to do so, to get them completed by the
Registrar by engaging other persons as a charge on the committee recoverable
as arrears of land revenue, the procedure and fee to be charged for it;

(zk)
the manner in which disputes to be referred for arbitration and fee for it;

(zl)
the procedure for selection and appointment of members of arbitration
council, their terms and conditions of service and related matters;

(zm)
the procedure to be followed before the Registrar or arbitration council for
settlement of disputes and guidelines and the format for announcing the
award;

(zn)
the manner in which the affairs of a co-operative housing society shall be
managed, rights and privileges of members on allotment of plot or flat,
issue of certificate of allotment giving therein the details of plot or flat
and the rights and privileges of member therein and member's obligations
towards the co-operative society;

(zo)
the procedure for the allotment of plot or flat by draw of lots and for the
verification of membership or change in the membership, with special
reference to co-operative housing societies which have been allotted land on
leasehold right basis by the lessor;

(zp)
the manner in which membership can be transferred in a co-operative housing
society to heir or a nominee subject to the terms and conditions of the
lease of land;

(zq)
the manner in which occupancy rights may be transferred in a co-operative
housing society subject to right of the lesser in terms of lease deed of the
land;

(zr)
the guidelines for the creation, maintenance and utilisation of the building
maintenance fund and replacement fund in a co-operative housing society;

(zs)
the manner in which a mortgage in favour of a co-operative housing society
or apex can be registered, its procedure and format;

(zt)
the procedure and manner of settling disputes in a co-operative housing
society;

(zu)
the procedure for recovery of outgoings and arrears of dues of co-operative
housing society or the apex by the Registrar as arrears of land revenue;

(zv)
the recovery of dues and foreclosure of properties in respect of dues of a
co-operative housing society, apex and other approved housing finance
institutions;

(zw)
the manner and procedure in which a member of a co-operative housing society
may be expelled;

(zx)
the manner and procedure in which the membership of a member of co-operative
housing society can be ceased;

(zy)
the guidelines for the management of co-operative housing societies;

(zz)
the guidelines for the maintenance of essential services in a co-operative
housing society;

(zza)
the form of register of the properties to be maintained by co-operative
housing society;

(zzb)
the manner of regularisation of membership of persons who have acquired
property in a co-operative housing society as power of attorney holder or
purchaser of property through agreement of sale and purchase subject to
right of lessor and procedure for enforcement of time limit for conversion
of property to freehold;

(zzc)
the prescription of the guidelines for execution of co-operative housing
projects and procedure for initiating action in case of default;

(zzd)
the prescription of the guidelines for the management of co-operative
housing complex by the co-operative housing societies;

(zze)
the manner in which a house building co-operative society which has achieved
its objects is to be wound up and the scheme therefor subject to the prior
consent of the lessor;

(zzf)
the procedure to be followed in respect of co-operative societies which have
decided for the dissolution or where liquidator has been appointed for
winding up proceedings by the Registrar and finalisation thereof;

(zzg)
the manner of service of notice regarding the procedure for enforcement of
charge;

(zzh)
the manner of effecting execution of orders and attachment;

(zzi)
attachment before award and authorisation of officers by the Registrar for
taking custody, preservation and sale of property under attachment, recovery
of debt as arrears of land revenue, specifying officers who can be delegated
powers of the Registrar to attach property before announcement of the award;

(zzj)
recovery of dues as arrears of land revenue procedure for it;

(zzk)
the procedure to be followed in presenting and disposing of appeals;

(zzl)
the procedure for selection of members of the Tribunal, laying down the
qualifications and the terms of the Chairman and the members of the
Tribunal, and framing of regulations for the working of Tribunal;

(zzm)
the procedure for submission of application for review;

(zzn)
the procedure for making submission for revision;

(zzo)
issuing directions to the co-operative societies to frame service rules for
employees;

(zzp)
fee to be fixed for supply of documents and information to a member or a
creditor;

(zzq)
the method of communication or publishing any order, decree or award
required to be communicated or published under this Act or the rules;

(zzr)
any other matter which is required to be, or may be, prescribed under this
Act.

(2)
Every rule made under this Act shall be laid as soon as may be after it is
made, before the Legislative Assembly of the National Capital Territory of
Delhi while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, the Legislative Assembly agrees in making any
modification to the rule or the Legislative Assembly agrees that the rule
should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be, so however, that any
such modification or annulment shall be without prejudice to the validity of
anything previously done under that rule.

138.
The Registrar may generally or in any particular matter under this Act or
for enforcement of directions of the Reserve Bank to protect the interest of
members and depositors of the co-operative banks licensed by the Reserve
Bank and registered under this Act or operating in Delhi under the
Multi-State Co-operative Societies Act, 2002 (39 of 2002), issue such orders
or directions as he may consider necessary to a co-operative bank or banks
and thereupon such co-operative bank shall give effect to such orders or
directions and shall report to him the compliance within the time specified
in the order or direction.

139.
Any member or creditor having interest
in the affairs of the co-operative society may seek information relating to
any transaction of the co-operative society and for that purpose may be
provided a certified copy of any document within thirty days from the date
of receipt of application relating to such transaction on payment of such
fee as may be specified.

141.
On the day on which the Delhi
Co-operative Societies Act, 2003 comes into force, the Delhi Co-operative
Societies Act, 1972 (35 of 1972) in force in the National Capital Territory
of Delhi shall stand repealed. Provided that the repeal shall not affect -

(a)
the previous operation of the Act so repealed or anything duly done or
suffered thereunder; or

(b)
any right, privilege, obligation or liability acquired, accrued or incurred
under the Act so repealed; or

(c)
any penalty, forfeiture or punishment incurred in respect of any offence
committed against the Act so repealed; or

(d)
any investigation, legal proceedings or remedy in respect of any such right,
privilege, obligation, liability, penalty, forfeiture or punishment as
aforesaid and any such investigation, legal proceedings or remedy may be
instituted, continued or enforced and any such penalty, forfeiture or
punishment may be imposed as if that Act had not been repealed.

142.
(1) If any difficulty arises in giving
effect to the provisions of this Act, the Government may by order, do any
thing not inconsistent with such provisions of this Act for the purpose of
removing the difficulties :

Provided
that no such order shall be made under this section after the expiry of two
years from the commencement of this Act.

(2)
Every order under this section shall be laid, as soon as may be after it is
made, before the Legislative Assembly of Delhi for ratification.

1.
Voluntary and Open Membership- Co-operatives are voluntary
organisations, open to all persons capable of using their services and
willing to accept the responsibilities of membership, without discrimination
on basis of gender, social inequality, racial, political ideologies or
religious consideration.

2.
Democratic Member Control -Co-operatives are democratic organisations
controlled by their members, who actively participate in setting their
policies and decision making. Elected representatives of these co-operatives
are responsible and accountable to their members.

3.
Member's Economic Participation- Members contribute equitably and
control the capital of their Co-operative democratically. At least a part of
the surplus arising out of the economic results would be the common property
of the co-operatives. The remaining surplus could be utilised benefiting the
members in proportion to their share in the Co-operative.

4.
Autonomy and Independence- Co-operatives are autonomous, self-help
organisations controlled by their members. If co-operatives enter into
agreement with other organisations including Government or raise capital
from external sources, they do so on terms that ensure their democratic
control by members and maintenance of Co-operative autonomy.

5.
Education, Training and Information - Co-operatives provide education
and training to their members, elected representatives and employees so that
they can contribute effectively to the development of their Co-operatives.
They also make general public, particularly young people and leaders aware
of the nature and benefits of co-operation.

6.
Co-operation among Co-operatives - Co-operatives serve their members
most effectively and strengthen the co-operative movement by working
together through available local, regional, national and international
structures.

7.
Concern for Community - While focusing on the needs of their members,
co-operatives work for the sustainable development of communities through
policies accepted by their members.